Time Of Technology Adoption And Learning By Using

Learning by using is introduced into an adoption model to explain why larger and more educated firms adopt earlier. Dynamic economies of scale arise in learning by using that speed up adoption. The empirical estimation of time of adoption using Tobit analysis integrates the concepts of adoption and diffusion, allowing the diffusion of the technology to be derived from the time of adoption analysis. In addition, by introducing heterogeneity among the adopters, Tobit analysis is shown to provide superior results to the traditional logit and probit analysis of the dichotomous adopt/not adopt variable.