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Technology Adoption and the Emergence of Regional Asymmetries
Author(s) -
Giovannetti Emanuele
Publication year - 2000
Publication title -
the journal of industrial economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.93
H-Index - 77
eISSN - 1467-6451
pISSN - 0022-1821
DOI - 10.1111/1467-6451.00113
Subject(s) - obstacle , quality (philosophy) , asymmetry , information asymmetry , industrial organization , economics , microeconomics , business , economic geography , geography , philosophy , physics , archaeology , epistemology , quantum mechanics
The model explains the emergence of asymmetric productive structures among regions based on adoption of a quality improving technology. Firms’ products are differentiated both in location and quality, location is given. We characterize symmetric and asymmetric equilibria of the two stage game in price and adoption. Asymmetric equilibria display partial adoption frequencies and regular geographical patterns of adoptions. The asymmetry of the economy has, often, a reverse U‐shaped relation with the innovation size. Market integration is an obstacle for the full adoption of the new technology and favours the emergence of regional asymmetries.