Upgrading traditional technologies in small-scale industrial clusters: producer-driven innovation adoption in Indonesia

This paper discusses processes of technological change in the tile cluster in the village Karanggeneng in Central Java, Indonesia. A growing number of producers in this cluster have switched from traditional kiln to so-called handpress production. We will analyze the processes of innovation adoption of the handpress technology in the cluster. Adoption of the handpress technology encompasses certain indivisibilities which require collaboration among producers to render innovation adoption profitable. We will discuss how pioneer adopters share information and stimulate social learning and adoption on the part of their neighbours, because simultaneous adoption of the handpress technology by groups of producers is needed in order to tackle the indivisibilities which pioneers are facing.