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Adoption of advanced manufacturing technology and firm performance in the Netherlands

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  • Bartelsmans, Eric

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Leeuwen, George van
  • Nieuwenhuijsen, Henry

Abstract

This paper presents characteristics of firms which employ advanced manufacturing tech-nology (AMT), explores the pattern of adoption of such technology, and traces the effects of adoption on the evolution of employment and productivity. The study uses linked firm-level data on production, factor inputs and on advanced manufacturing technology. It is found that the percentage of firms which employ advanced technology increases with higher labor productivity, higher export-sales ratios, and especially larger firm size. Corrected for interac-tions, however, only initial size and the capital-labor ratio in 1985 aid in predicting adoption of AMT. Conditional on adoption of AMT it is seen that intensity of advanced technology inputs decrease with firm size and with labor productivity. Finally, firms which employed AMT in 1992 show higher average growth rates of employment and of the capital-labor ratio between 1985 and 1991.

Suggested Citation

  • Bartelsmans, Eric & Leeuwen, George van & Nieuwenhuijsen, Henry, 1995. "Adoption of advanced manufacturing technology and firm performance in the Netherlands," Serie Research Memoranda 0031, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    • Handle: RePEc:vua:wpaper:1995-31
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    References listed on IDEAS

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    Cited by:

    1. Georg Graetz & Guy Michaels, 2018. "Robots at Work," The Review of Economics and Statistics, MIT Press, vol. 100(5), pages 753-768, December.
    2. Mark Doms & Eric J. Bartelsman, 2000. "Understanding Productivity: Lessons from Longitudinal Microdata," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 569-594, September.
    3. Bocquet, Rachel & Brossard, Olivier, 2007. "The variety of ICT adopters in the intra-firm diffusion process: Theoretical arguments and empirical evidence," Structural Change and Economic Dynamics, Elsevier, vol. 18(4), pages 409-437, December.
    4. Saba Firdousi, 2016. "Technology in the Sialkot Gloves Manufacturing Sector," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 253-272, September.
    5. repec:lic:licosd:20308 is not listed on IDEAS
    6. Christine Ngoc Ngo & Miao Chi, 2017. "Differentials in market constraints and value addition among micro, small, and medium enterprises in Vietnam," WIDER Working Paper Series 082, World Institute for Development Economic Research (UNU-WIDER).
    7. Brian P. Cozzarin, 2016. "Advanced technology, innovation, wages and productivity in the Canadian manufacturing sector," Applied Economics Letters, Taylor & Francis Journals, vol. 23(4), pages 243-249, March.
    8. Christine Ngoc Ngo & Miao Chi, 2017. "Differentials in market constraints and value addition among micro, small, and medium enterprises in Vietnam," WIDER Working Paper Series wp-2017-82, World Institute for Development Economic Research (UNU-WIDER).
    9. Mohnen, Pierre, 2019. "R&D, innovation and productivity," MERIT Working Papers 2019-016, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    10. Anne Leahy & Joanne Loundes & Elizabeth Webster & Jongsay Yong, 2004. "Industrial Capabilities in Victoria," The Economic and Labour Relations Review, , vol. 15(1), pages 74-98, June.
    11. Bourke, Jane & Roper, Stephen, 2016. "AMT adoption and innovation: An investigation of dynamic and complementary effects," Technovation, Elsevier, vol. 55, pages 42-55.
    12. Luuk Klomp & George Van Leeuwen, 2001. "Linking Innovation and Firm Performance: A New Approach," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(3), pages 343-364.
    13. Ndubuisi, Gideon & Avenyo, Elvis, 2018. "Estimating the effects of robotization on exports," MERIT Working Papers 2018-046, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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