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What are the characteristics of an environment that is conducive to technological innovation? In recent years several … studies have appeared which have emphasized the comprehensive institutional framework of innovation in various countries … Systems and Economic Performance: The Case of Factory Automation represents the first in-depth analysis of a `technological …
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We present a dynamic model where the probability of outsourcing production is increasing in the firm’s expectation of technological change. As the pace of innovations in production technologies increases, the less time the firm has to amortize the sunk costs associated with purchasing and...
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