Bridging the Technological Divide

Page 93

13. Is the leapfrog pattern observed at the country level (figure 2.12) also observed for firms? A constraint to address this question with FAT data is the lack of a time series that allows one to observe adoption of a given technology by firms over time. Yet, under the assumption that larger firms are earlier adopters, it is possible to observe the pattern of adoption across firm size as a continuum variable. Given that only one point in time in the data can be observed (around the latest year of figure 2.12), one would expect: (a) a gap between mobile and fixed-line telephone use, with firms being more likely to use mobile phones; and (b) a smaller gap between mobile and fixed-line phone use among earlier adopters (larger firms). Panel a of figure 2.13 suggests that both conditions hold. On average, a very large share of firms is using mobile phones for business purposes, and there is no significant difference across firm size, after controlling for other characteristics, such as country fixed effects. 14. The question also asks the firm to compare with firms that are global technology leaders in their sector of activity. 15. The self-assessment question is asked before any of the technology adoption questions to prevent any bias in the self-assessment from potential framing. 16. These results are similar when using the actual technology sophistication index instead of quintiles of the distribution of the index within countries.

References Aghion, P., R. Blundell, R.Griffith, P. Howitt, and S. Prantl. 2009. “The Effects of Entry on Incumbent Innovation and Productivity.” Review of Economics and Statistics 91 (1): 20–32. Battisti, G., and P. Stoneman. 2005. “The Intra-Firm Diffusion of New Process Technologies.” International Journal of Industrial Organization 23 (1): 1–22. Bloom, N., and J. Van Reenen. 2007. “Measuring and Explaining Management Practices across Firms and Countries.” Quarterly Journal of Economics 122 (4): 1351–408. Camerer, C., and D. Lovallo. 1999. “Overconfidence and Excess Entry: An Experimental Approach.” American Economic Review 89 (1): 306–18. Cirera, X., D. Comin, M. Cruz, and K. M. Lee. 2020a. “Anatomy of Technology in the Firm.” NBER Working Paper 28080, National Bureau of Economic Research, Cambridge, MA. Cirera, X., D. Comin, M. Cruz, and K. M. Lee. 2020b. “Technology within and across Firms.” CEPR Discussion Paper 15427, Center for Economic and Policy Research, Washington, DC. Comin, D., and B. Hobijn. 2004. “Cross-Country Technology Adoption: Making the Theories Face the Facts.” Journal of Monetary Economics 51 (1): 39–83. Demsetz, H. 1997. “The Firm in Economic Theory: A Quiet Revolution.” American Economic Review 87 (2): 426–29. Gort, M., and S. Klepper. 1982. “Time Paths in the Diffusion of Product Innovations.” Economic Journal 92 (367): 630–53. Grover, A., S. V. Lall, and W. F. Maloney. 2022. Place, Productivity, and Prosperity: Revisiting Spatially Targeted Policies for Regional Development. World Bank Productivity Project series. Washington, DC: World Bank. Grover Goswami, A., D. Medvedev, and E. Olafsen. 2019. High-Growth Firms: Facts, Fiction, and Policy Options for Emerging Economies. World Bank Productivity Project series. Washington, DC: World Bank. Hsieh, C.-T., and P. J. Klenow. 2009. “Misallocation and Manufacturing TFP in China and India.” Quarterly Journal of Economics 124 (4): 1403–48. Maloney, W. F., and A. Zambrano. 2021. “Learning to Learn: Experimentation, Entrepreneurial Capital, and Development.” Policy Research Working Paper 9890, World Bank, Washington, DC.

Facts about Technology Adoption and Use in Developing Countries 67


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A.1 Number of Establishments Surveyed, by Strata

4min
pages 236-237

7.5 The Difference between Vouchers and Grants

8min
pages 219-222

Notes

5min
pages 224-225

Corporation (KOTEC

2min
page 217

References

7min
pages 226-229

7.3 Agriculture Extension: The Case of Embrapa

6min
pages 214-216

Instruments to Support Technology Upgrading at the Firm Level

2min
page 209

Adoption of Technology

6min
pages 211-213

7.1 Digital Platforms Are Prone to Market Concentration and Dominance

9min
pages 198-201

References

6min
pages 192-194

6.1 Specific Barriers to the Use of Digital Platforms

2min
page 176

Surrounded by Digital Infrastructure

0
page 174

Factual Evidence on Drivers of and Obstacles to Technology Adoption

4min
pages 172-173

References

8min
pages 161-166

Notes

2min
page 160

Technology and Resilience

2min
page 146

Digital Technologies

2min
page 138

Introduction

1min
page 137

References

4min
pages 134-136

4.10 Technology Sophistication Contributes to Wage Inequality within Firms

1min
page 132

Introduction

1min
page 121

References

2min
pages 117-120

Functions Manually

1min
page 100

Technology Differences across and within Sectors

2min
page 96

Introduction

1min
page 95

References

3min
pages 93-94

Summing Up

2min
page 91

Notes

2min
page 92

Other Technology Facts

2min
page 86

Business Functions Varies across Firm Size

1min
page 83

Introduction

1min
page 73

Using the FAT Data to Understand Some of the Limitations of Standard Measures of Technology

4min
pages 63-64

References

4min
pages 70-72

Measuring Adoption and Use of Technology by Firms

2min
page 48

References

3min
pages 42-46

Opening the Black Box: The Firm-level Adoption of Technology (FAT) Survey

4min
pages 50-51

Introduction

1min
page 47

Notes

2min
page 41

Technology (FAT) Survey

1min
page 52
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