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Industrial Policy and Technology Diffusion: Evidence from Paper Making Machinery in Indonesia

The authors analyse the diffusion and adoption of paper making machinery in the Indonesian pulp and paper industry, from 1923 through 2000. The two main questions in this paper are: (1) What patterns of technology diffusion can be discerned in the Indonesian paper manufacturing sector; and (2) What role have industrial policies played in the diffusion of technology and the expansion of the paper industry.