This paper examines intra-plant diffusion of new technology in the Japanese steel industry. The introduction of the basic oxygen furnace (BOF) was the greatest breakthrough in steel refining in the last century. Using unique panel data, the paper estimates total factor productivity by technology...

In differentiated goods markets with societal implications, quality standards are commonly implemented to avoid the under-provision of innovation. Firms have clear incentives to engage in strategic behavior because policymakers use market outcomes as a benchmark in designing regulation. This...