Lobbies and Technology Diffusion

67 Pages Posted: 14 Sep 2006 Last revised: 22 Jul 2012

See all articles by Diego Comin

Diego Comin

New York University (NYU) - Department of Economics; National Bureau of Economic Research (NBER)

Bart Hobijn

ASU

Date Written: January 2005

Abstract

This paper explores whether lobbies slow down technology diffusion. To answer this question, we exploit the differential effect of various institutional attributes that should affect the costs of erecting barriers when the new technology has a technologically close predecessor but not otherwise. We implement this test in a unique dataset compiled by us that covers the diffusion of 20 technologies for 23 countries over the past two centuries. We find that each of the relevant institutional variables that affect the costs of erecting barriers has a significantly larger effect on the diffusion of technologies with a competing predecessor technology than when no such a technology exists. These effects are quantitatively important. Thus, we conclude that lobbies are an important barrier to technology adoption and to development.

Suggested Citation

Comin, Diego and Hobijn, Bart, Lobbies and Technology Diffusion (January 2005). NBER Working Paper No. w11022, Available at SSRN: https://ssrn.com/abstract=645264

Diego Comin (Contact Author)

New York University (NYU) - Department of Economics ( email )

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New York, NY 10011
United States

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
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Bart Hobijn

ASU ( email )

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Tempe, AZ 85287-9801
United States
(480)-965-0215 (Phone)

HOME PAGE: http://www.barthobijn.net

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