Barriers to Technology Adoption and Entry

Igor Livshits and James (Jim) MacGee

No 20087, University of Western Ontario, Economic Policy Research Institute Working Papers from University of Western Ontario, Economic Policy Research Institute

Abstract: A key feature of recent work on barriers to technology adoption is the assumption that monopoly rights of insiders are limited by the ability of industry outsiders to enter. This paper endogenizes the decision of a government to provide barriers to technology adoption alone or in combination with barriers to entry of outsiders. Using a political economy model, we find that a government provides barriers to both technology adoption and outsider entry. If governments are not too "corrupt", restricting their ability to provide barriers to entry may eliminate barriers to adoption. However, for sufficiently "corrupt" governments, prohibiting barriers to entry leads to more extreme barriers to technology adoption.

Keywords: monopoly rights; technology adoption; lobbying; entry (search for similar items in EconPapers)
JEL-codes: D72 F43 O4 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-dge, nep-mic and nep-tid
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