Industrial Policy and Technology Diffusion: Evidence from Paper Making Machinery in Indonesia |
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Authors: | Michiel van Dijk Adam Szirmai |
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Institution: | aEindhoven University of Technology, The Netherlands |
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Abstract: | In this paper, we analyze the diffusion and adoption of paper making machinery in the Indonesian pulp and paper industry, from 1923 till 2000. We develop a machine level index of technological sophistication (mach), which measures the technological distance of each paper machine to the world technological frontier. The data reveal a pattern of rapid technological catch up. But catch up was not an industrywide phenomenon. Some modern firms installed state-of-the-art machinery, while others installed older vintages. The paper argues that industrial policy has played an important role in the speed and nature of diffusion of paper making machinery. |
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Keywords: | Asia Indonesia pulp and paper industry technology diffusion technology adoption industrial policy machine index |
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