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Finding Mr. Schumpeter: technology adoption in the cement industry
Author(s) -
Macher Jeffrey T.,
Miller Nathan H.,
Osborne Matthew
Publication year - 2021
Publication title -
the rand journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.687
H-Index - 108
eISSN - 1756-2171
pISSN - 0741-6261
DOI - 10.1111/1756-2171.12362
Subject(s) - competitor analysis , competition (biology) , cement , economics , kiln , industrial organization , creative destruction , microeconomics , business , market economy , engineering , management , waste management , history , ecology , archaeology , biology
Abstract We examine the adoption of fuel‐efficient precalciner kilns in the cement industry using the universe of adoption decisions in the United States over 1973–2013. We find that cement plants are more likely to adopt the technology if fuel costs are high, nearby competitors are few, and local demand conditions are favorable. We relate the findings to the Schumpeterian and induced innovation hypotheses regarding the effects of competition and factor prices. Our results suggest firms may be most responsive to factor prices under advantageous competitive and demand conditions.