Technology Adoption and Career Concerns: Evidence from the Adoption of Digital Technology in Motion Pictures

Abstract

This paper studies the impact of career concerns on technological change by analyzing the adoption of digital cinematography in the US motion picture industry. This setting allows us to collect rich data on the adoption of this new technology at the project-level (i.e., movie) as well as on the career of the main decision maker (i.e., director). We find that early career directors played a leading role in the adoption of digital technology and that this effect appears to be explained by career concerns, rather than alternative motives we consider and analyze. Technological savvy also plays a role.

Keywords: Technology Adoption, Career Concerns, Digital Transition, Film Directors.

JEL Classification: D22, L20, M19.