New Technology Adoption in West Virginia: Implications for Manufacturing Modernization Policies

This paper explores the determinants of new technology adoption using data obtained from a 1993 survey of 299 manufacturing establishments in the state of West Virginia. It examines the use of 20 hardware-based and organizational new manufacturing technologies, aggregate technology use, and plans for future technology use. Multivariate regression analyses indicate that larger, export-oriented, branch plants that manufacture products in long production runs and plants that are located in counties with a sizeable manufacturing sector adopt more new technologies than other types of plants. The results also suggest that there is a role for further government policy in encouraging plant modernization. Although participation in a state technology assistance program is not yet associated with higher levels of aggregate new technology use, it is found to associated with adoption of specific technologies and receptivity to new technology investment. The study’s results also confirm the value of training and suggest that a strategy of targeting smaller and medium-sized plants with services focused on multiple clustered locations may be effective in stimulating new technology use among these manufacturers.