Intangible resources and technology adoption in manufacturing firms

Our objective in this paper is to analyse the determinants of the use of advanced manufacturing technologies in manufacturing firms. We go beyond more traditional approaches and consider the role of complementarities in technology adoption at two levels. First, we adapt Teece's (1986) framework to study the incentives to use new technology that stem from investments in R&D, human capital and advertising. Second, we analyse whether technology use is conditioned by a system effect that arises from the use of related technologies. We test our hypotheses on a representative sample of manufacturing firms in Spain. Our results fully support the idea that R&D investments increase the likelihood of technology use, but only offer partial support for human capital and advertising investments. Export intensity, being part of a business group and epidemic effects are also important determinants of adoption.

► We analyse complementarities on the use of AMT in manufacturing firms. ► Investments in R&D, advertising and human capital are related to the use of AMT. ► We also examine the existence of a system effect between related technologies. ► R&D investments increase the likelihood of technology use. Advertising and human capital are related to the use of certain AMT technologies. ► Export intensity, being part of a business group and epidemic effects are also important.