Quantifying technology adoption, spillovers, and diffusion across firms is crucial for understanding industry dynamics, and in turn countries' growth. This column combines firm-level input-output VAT data from Turkey with other data to identify the channels of technology spillovers and diffusion.

The authors find a positive effect of robot adoption by one firm on vertically connected firms' productivity, employment, wages, imports, and probability of adopting in the future, but negative spillovers between horizontally connected firms that share a customer base, suggesting that customer stealing is the most likely outcome when a competitor adopts a technology.

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31 January 2025

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Vox EU

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https://cepr.org/voxeu/columns/technology-spillovers-diffusion-and-rivalry-firm-networks

This Blog is published under the centre's Growth programme, Growth programme.

This publication comes under the following theme: Technology adoption and diffusion