Innovation and Diffusion

In the study of innovation, the word diffusion is commonly used to describe the process by which individuals and firms in a society/economy adopt a new technology, or replace an older technology with a newer. But diffusion is not only the means by which innovations become useful by being spread throughout a population, it is also an intrinsic part of the innovation process, as learning, imitation, and feedback effects which arise during the spread of a new technology enhance the original innovation. This article provides an historical and comparative perspective on diffusion that looks at the...

In the study of innovation, the word diffusion is commonly used to describe the process by which individuals and firms in a society/economy adopt a new technology, or replace an older technology with a newer. But diffusion is not only the means by which innovations become useful by being spread throughout a population, it is also an intrinsic part of the innovation process, as learning, imitation, and feedback effects which arise during the spread of a new technology enhance the original innovation. This article provides an historical and comparative perspective on diffusion that looks at the broad determinants: economic, social, and institutional. The ways in which the different social scientific disciplines think about diffusion is discussed and a framework is presented for studying its determinants. Some of the empirical evidence on these determinants is reviewed, and a range of examples are also given.