ABSTRACT
Collectively, researchers in different areas have made a significant effort to estimate industrial production functions, returns to technological inputs, and technological change. To investigate the variation in production technology across regions, earlier studies either employed cross sectional analyses with specific regional factors as additional independent variables in production functions, or several time series models for different regions to reveal regional difference of production functions. To test the direction of biased technological change, the researcher elaborates the production function to control the impact of change in the capital-labor ratio. Production function with embodied technologies, company characteristics, and regional factors are estimated for textile-apparel companies and computer-electronics companies for 1985 and 1990 separately. Knowledge or skills of technical and professional labor input, which is significant in the growth equations, is insignificant, showing the difference between growth equations and production functions in stochastical structure.