Technology choice, adaptation and the quality dimension in the Japanese cotton textile industry

It finds that both the adoption of multiple shifting associated with a decline in the yarn count and the switch from a predominantly rule to a predominantly ring technology represent important examples of indigenous innovation and adaptation which can make a large difference in solving a developing economy"s labor absorption problem. Secondly, it tries to reach an understanding of what the environmental conditions are, in both the narrowly economic and the broadly conceived institutional sense, which yield better, i.e., more endowment-sensitive, decisions on technology choice and technology change at the individual entrepreneurial level. An examination of the contrast with performance and conditions in the Indian textile industry permitted us to focus on the importance of imperfections in the credit markets restricting entry and managerial incentive systems restricting entrepreneurial motivation as critical to the rates of technology adaptation and diffusion.