Research Policy 32 (2003) 351–366 Modeling the adoption rates of manufacturing technology innovations by small US manufacturers: a longitudinal investigation Paul M. Swamidass ∗ Thomas Walter Center for Technology Management, Auburn University, Tiger Drive, Room 104, Auburn, AL 36849-5358, USA Received 31 August 2000; received in revised form 1 December 2001; accepted 1 December 2001 Abstract This study provides conclusive evidence to support the view that small plants are slower than larger plants to adopt manufacturing innovations. This empirical study based on over 1000 US manufacturing plants engaged in producing dis- crete products, studies the adoption of manufacturing technologies in small plants relative to large plants between 1993 and 1997. Under the assumption that small manufacturers are disadvantaged, several federal and state programs have been created to assist small manufacturers in acquiring and adopting manufacturing innovations. Through quantification of technology adoption in small manufacturing firms, this study’s findings reveal which manufacturing innovations are in greater need of governmental assistance programs. While small plants are making progress over time in catching up with larger plants in computerized technology use, they are not making similar progress in adopting manufacturing technology innovations in soft technologies. Several propositions for future research and recommendations for public policy are offered. © 2002 Elsevier Science B.V. All rights reserved. Keywords: Computerized technologies; Innovations in manufacturing; Large and small plants; Manufacturing technology adoption; Small plant manufacturing technology adoption ratio (SPMTAR); Soft technologies 1. Introduction Small manufacturing firms are vital to the US econ- omy. For example, over 70% of all manufacturing plants in the industries conforming to Standardized Industrial Classifications (SICs) 34–38 (a descrip- tion of these industries in the Standardized Industrial Classification of the US Department of Commerce appears later) are small plants with less than 100 employees; there are over 30,000 such small plants in these industries (Bureau of Census, 1993). Yet, ∗ Tel.: 1-334-844-4333; fax: +1-334-844-1678. E-mail address: swamidas@auburn.edu (P.M. Swamidass). small manufacturing firms, which are in a major- ity in this country, are at a disadvantage. Consider this: Most of the literature on competitive strategy—from the fields of business strategy, marketing and indus- trial organization economics—has focused on the advantage of large firms and high market share: ... (Fiegenbaum and Kirnani, 1991; p. 101). Swamidass (2000a) found that more than 67% of US manufacturers report manufacturing cycle time reduction, manufacturing cost reduction, product line increase and ROI increase as a result of manufacturing technology use. Literature records that larger plants 0048-7333/02/$ – see front matter © 2002 Elsevier Science B.V. All rights reserved. PII:S0048-7333(02)00019-7