Determinants of Technology Adoption in Ugandan Agricultural Manufacturing Firms

This paper analyzed the impact of investment climate factors on technology adoption by Ugandan agricultural manufacturing firms. A profit regression model was used in the analysis. Panel data for the 2000-2002 period showed that the firms most likely to adopt new technology are large, participate in export market, face stiff foreign competition, located in the main city, fast-growing, have a large share of highly skilled workers, and owned by foreign entities. On the other hand, agricultural manufacturing firms that are old, reported inadequate infrastructure as being one of the three major constraints of doing business in Uganda hence are less likely to invest in technology. Future increases in technology adoption by firms will require complementary reforms of the investment climate.