DETERMINANTS OF ADOPTION OF FLEXIBLE PRODUCTION TECHNOLOGIES: EVIDENCE FROM PORTUGUESE MANUFACTURING INDUSTRY

This paper investigates the main determinants of adoption of flexible production technologies (FPTs), using a cross-section of Portuguese manufacturing firms. In order to investigate the determinants of adoption by Portuguese firms we estimate a probit model of technology adoption, where rank, location, industry and demand uncertainty effects are considered. The main findings are that: (i) plant heterogeneity is important in understanding differences in the likelihood of adoption; (ii) spillover effects resulting from geographical proximity foster adoption; (iii) differences in technological regimes across industries also play a role in the diffusion process; and (iv) demand uncertainty increases the likelihood of adoption of FPTs.