Technology adoption in response to changes in market conditions: Evidence from the US petroleum refining industry

Author: Chen, Ming-yuan

Source: Economics of Innovation and New Technology, Volume 14, Number 8, November 2005 , pp. 735-756(22)

Publisher: Routledge, part of the Taylor & Francis Group

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Abstract:

This paper analyzes the determinants of the levels and rates of technology adoption for petroleum refineries that survived the period 1980–1989, during which the conditions of product demand and crude oil supply changed significantly. Regression models are specified to investigate the growth of technology-related capacity, the growth of technology complexity, and the rates of adoption estimated from a diffuse model of technology use. Both levels and rates of adoption are hypothesized to be affected by refinery size, regulatory status, elements of local markets, and geographical factors. Empirical results generally suggest that compared with the supply-side factors of crude oil sources and regulatory subsidies, refinery size and demand-side factors, such as total consumption, consumption growth and fluctuation, and changes of the consumption mix, are responsible for the most part of the determination of technology adoption for refineries surviving the 1980s.

Keywords: Technology adoption; Petroleum refining industry

Document Type: Research article

DOI: http://dx.doi.org/10.1080/10438590500117487

Affiliations: 1: Department of Industrial Economics, Tamkang University, 151 Ying-Chuan Road, Tamshui, Taipei, 25137, Taiwan, R.O.C

Publication date: 2005-11-01

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