Technology adoption, learning-by-doing, and economic growth

We develop a model in which firms choose which technologies to adopt as well as the timing of such adoptions. In between adoptions, a firm accumulates expertise in its technology which allows it to operate the technology more efficiently. Thus, there is firm-specific learning-by-doing. For certain parameterizations of the model and appropriate initial distributions of technologies and expertise, equilibria are characterized by positive and constant growth of per capita output and positive but nonconstant growth of each firm′s output. We find firms′ adoption decisions and output growth depend upon the efficiency of capital markets. Journal of Economic Literature Classification Numbers: O41, O33.