Dynamics of Distribution and Diffusion of New Technology (eBook)

Claude Diebolt is a CNRS Research Professor in Economics, esp. Cliometrics at the University of Strasbourg, France. Tapas Mishra is an Associate Professor in Econometrics at Southampton Business School, University of Southampton, UK. Mamata Parhi is a Senior Lecturer in Economics at Roehampton Business School, University of Roehampton, UK.

Acknowledgement 6
Contents 8
Chapter 1: Introduction 12
1.1 Context and Background 12
1.2 Research Problem 15
1.3 Research Objectives 17
1.4 Methodological Approach of the Book 18
1.5 Scientific Importance 19
1.6 Outline of the Book 21
Appendix 23
Bibliography 24
Chapter 2: Theoretical and Empirical Literature on Diffusion: A Move Towards a Broader Perspective 26
2.1 Diffusion of New Technologies: An Overview 26
2.2 Definition and Indicators to Measure Diffusion 27
2.3 Modelling Technology Diffusion: Perspectives from Mainstream Economics Literature 29
2.3.1 Epidemic Models 29
2.3.2 Equilibrium Models 30
2.3.2.1 Probit Models 32
2.3.2.2 Game Theoretic Approach 33
2.3.3 Empirical Evidences 35
2.4 Diffusion from a Spatial Perspective 37
2.4.1 Traditional Geographic Diffusion Models 38
2.4.2 Agglomeration Economies, Location Theories and Diffusion of Technologies 40
2.4.3 Evidences Linking Diffusion with Regional Differences, Agglomeration, and Spillovers 44
2.5 A Synthesis of Literature 46
2.5.1 Need for a Broader Encompassing 46
2.5.2 Issues for Present Research 48
Bibliography 50
Chapter 3: Integrating Models of Diffusion: A Conceptual Framework for Research 56
3.1 Introduction 56
3.2 Systemic Nature of Innovation Diffusion 57
3.2.1 Adoption of New Technologies: An Innovation Process? 57
3.2.2 Systemic Nature of Innovation and Diffusion 59
3.3 Systems of Innovation Approach: Theoretical Roots 60
3.3.1 Different Notions of `Systems of Innovation´ 60
3.3.2 Innovation/Diffusion as Links, Flows, and Networks 61
3.3.3 Importance of Local Level Networking on Diffusion 63
3.4 Proposed Framework for the Study: Research Questions 65
3.5 Research Design 70
Bibliography 71
Chapter 4: A Synoptic Review of the Indian Automotive and Auto Components Industry 75
4.1 Introduction 75
4.2 Globalization and Structural Transformation of Indian Automotive Industry 76
4.2.1 Industry Structure and Significance 76
4.2.2 Industry Growth Path Through Time: The Paradigm Shift 78
4.2.3 Growth Dynamics: Past and Recent Trends 81
4.3 The Auto Components Industry: Profile and Overview 83
4.3.1 Industry Structure and Characteristics 84
4.4 An Assessment of the Automotive and Auto Components Industry Scenario 87
Appendix 89
Bibliography 94
Chapter 5: A Comparative Regional Analysis of Indian Auto Components Industry 95
5.1 Motivation 95
5.2 Structural Differences Among Regions 97
5.3 Inter-regional Comparison of Economic Indicators 101
5.4 Differences in Product Specialisation Among Clusters 105
5.5 Synthetic Analysis of Regional Differences 108
Appendix 111
Bibliography 111
Chapter 6: Dynamics of Inter-firm Linkages in Indian Automotive Industry: A Social Network Analysis 113
6.1 Introduction 113
6.2 Preview of Buyer-Supplier Linkages in Indian Automotive Industry 115
6.3 Network Analysis of B-S Relations in Indian Automotive Industry 120
6.3.1 Methodological Outline Underlying Social Network Analysis: Structural Properties of Networks 120
6.3.2 Sources and Nature of Data 124
6.3.3 Analysis of the Network Structure of Automotive Firms 125
6.3.3.1 General Features of the Network 125
6.3.3.2 Scale-Free Nature of Supplier-Customer Network 127
6.3.3.3 Analysis of Power Concentration in Automotive Industry 130
6.3.3.4 Regional Dynamics of the B-S Network 134
6.4 Discussion and Conclusion 138
Bibliography 140
Chapter 7: Technological and Organizational Innovations in Auto Components Industry: An Analysis of Survey Data from Diffusion... 143
7.1 Introduction 143
7.2 Survey Data and Methodology 143
7.2.1 Representativeness of the Sample 145
7.3 Characteristics of Auto Component Firms 148
7.4 Pattern and Intensity of Adoption of AMTs 151
7.4.1 Trend at the All-India Level 152
7.4.2 Regional Differences in Adoption Pattern 157
7.5 Summary and Discussion 161
Appendix 163
List of AMTs (Advanced Manufacturing Techniques) Used in the Study 163
List of AMPs (Advanced Manufacturing Practices) Used in the Study 164
Bibliography 165
Chapter 8: AMT Diffusion in Indian Auto Components Industry: An Examination of the Determinants of Adoption 167
8.1 Introduction 167
8.2 Principal Determinants of Adoption 168
8.2.1 Internal Resources and Absorptive Capability of the Firm 169
8.2.2 Demand and Market Conditions 170
8.2.3 Perceived Benefits (Incentives) of Adoption 171
8.2.4 Linkages to External Sources 172
8.3 Empirical Framework 173
8.3.1 Methodology 173
8.3.1.1 Mean-Based Estimation Method 173
Binary Logit Model 174
Ordered Logit Model 176
8.3.1.2 Quantile Regression Framework for Discrete Choice Models 177
8.3.2 Definition of Variables 178
8.3.2.1 Dependent Variable: Adoption of AMTs 179
8.3.2.2 Explanatory Variables: Predictors of AMT Adoption 180
8.4 Discussion of Results 186
8.4.1 Overall AMT Use and Intensity of Adoption 186
8.4.1.1 A. Mean-Based Results: Logistic/Ordered Logit Regression 186
8.4.1.2 Logistic Quantile Regression Results 192
8.4.2 Impact of Regions/Clusters on Adoption Patterns 195
8.4.3 Predicted Probabilities of Adoption 199
8.5 Conclusion: A Synthesis of Adoption Causalities 202
Appendix 1 204
Appendix 2 205
Bibliography 206
Chapter 9: Geographical Proximity and Adoption of AMTS in Indian Auto Components Industry 209
9.1 Introduction 209
9.2 The Catalytic Role of Geography on Adoption 210
9.3 Empirical Analysis 213
9.3.1 Primary Analysis of Adoption Pattern Proximity Effects 213
9.3.1.1 Role of Physical Proximity 213
9.3.1.2 Intensity of Interaction (Relational Proximity) 216
9.3.2 Econometric Analysis 218
9.3.2.1 Data and Measurement 218
9.3.2.2 Estimation Method and Regression Results 221
9.4 Discussion and Conclusion 226
Appendix 228
Bibliography 231
Chapter 10: Summary and Conclusions 232
10.1 Overview 232
10.2 Research Findings 233
10.2.1 Breadth and Elasticity of the Economic Opportunities 233
10.2.2 Cohesiveness, Regional, and Relational Structure of the Industry 234
10.2.3 Determining Adoption: Treading Beyond Convention 236
10.2.4 Spatial Influence and Adoption Pattern 237
10.3 Implications for Policy 238
10.3.1 Stress on RandD and Human Capital 238
10.3.2 Promoting Missing Institutions and Infrastructure 239
10.3.3 Tackling Demand Uncertainties 240
10.3.4 Focus on Co-ordination Rather than Appropriation 240
10.4 Study Limitations and Directions for Further Research 240
Bibliography 242
Synopsis 243