Flexible technology and firm size |
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Authors: | Zoltan J Acs David B Audretsch Bo Carlsson |
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Institution: | (1) Merrick School of Business, University of Baltimore, 21201-5779 Baltimore, MD, USA;(2) Wissenschaftszentrum Berlin Für Sozialforschung, Reichpietschufer 50, D-1000 Berlin, Germany;(3) Department of Economics, Case Western Reserve University, 44106 Cleveland, OH, USA |
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Abstract: | This paper provides the first empirical examination of the relationship between the application of flexible technologies and the firm-size distribution. In particular, we test the hypothesis that implementation of flexible technologies has tended to promote small firms more than large firms. Based on a sample of 36 engineering industries and using two distinct time periods between 1976 and 1986 and two different measures of what constitutes a small firm, we find that the application of certain flexible technologies, such as numerically controlled machines, has led to an increased presence of small firms, while the use of other flexible technologies, such as programmable robots, is associated with a decreased presence of small firms over time. |
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