How Do Managers’ Beliefs about New Technologies Evolve? Informational Interventions and the Adoption of Energy-Efficient Stitching Motors in Bangladesh
TWCF Number
Project Duration
October 1 / 2022
- September 30 / 2024
Core Funding Area
Individual Freedom and Free Markets
North America
Amount Awarded
Grant DOI*

* A Grant DOI (digital object identifier) is a unique, open, global, persistent and machine-actionable identifier for a grant.

Eric Verhoogen
Institution Innovations for Poverty Action

How do beliefs about new technologies evolve? Adoption of energy-efficient technology by firms is often very slow, even when the benefits appear to be evident. A project led by Eric Verhoogen of Columbia University, working with Innovations for Poverty Action, from Innovations for Poverty Action investigates how Bangladesh’s leather goods, footwear, and ready-made garment producers process information about new technologies. A randomized control trial will examine the reluctance to adopt a more efficient motor for sewing machines in Bangladesh.

Traditional devices run on clutch motors which use energy even when not stitching. Newer servo motors use energy only when the device is stitching and use 75% less electricity than their predecessors. They can also seamlessly replace motors on older machines without requiring changes in other aspects of the sewing process. Research indicates that this fact is not widely known.

These interventions will provide information about the servo motors to owners and top managers of the leather goods and footwear firms and will shed light on what makes individuals choose to adopt new technologies or not.

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