The role of technology use in the survival and growth of manufacturing plants

Mark Doms, Timothy Dunne, Mark J. Roberts

Research output: Contribution to journalArticle

155 Scopus citations

Abstract

This paper documents the relationship between capital intensity, the use of advanced manufacturing technology, growth rates, and exit probabilities for a sample of U.S. manufacturing plants. It utilizes data from a unique establishment survey of technology usage that allows us to control for both the quantity and heterogeneity of capital in the plant. The main findings are that capital-intensive plants and plants employing advanced technology have higher growth rates and are less likely to fail. The effects are present after controlling for plant productivity and age; however, the technology results are sensitive to the inclusion of size variables.

Original languageEnglish (US)
Pages (from-to)523-542
Number of pages20
JournalInternational Journal of Industrial Organization
Volume13
Issue number4
DOIs
StatePublished - Dec 1995

All Science Journal Classification (ASJC) codes

  • Industrial relations
  • Aerospace Engineering
  • Economics and Econometrics
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management
  • Industrial and Manufacturing Engineering

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