Using firm-level data from the 1986 Census of Manufactures of Taiwan, the authors examine the links between technical efficiency and firm investmetns in technology and exports. Stochastic frontier techniques are used to estimate the technical efficiency of firms by investments in technology as...

This article highlights the importance of firms' own investments in technological capability. Recent research on the nature and extent of technical change in developing countries shows that the accumulation of technological capability should be treated not as a by-product but as an activity in...