IDEAS home Printed from https://ideas.repec.org/a/taf/ecinnt/v13y2004i1p91-99.html
   My bibliography  Save this article

A model of the linked adoption of complementary technologies

Author

Listed:
  • Margaret Smith

Abstract

This paper presents a dynamic feedback model of the technology diffusion process in which each firm's technology adoption decisions maximize the net present value of its anticipated cash flow, taking into account the direct cost savings, the number of linked firms expected to adopt complementary technologies, and anticipated changes in adoption costs. The adoption of complementary technologies need not be simultaneous, but linked technologies can induce a rapid industrial regime shift without explicit coordination or planning.

Suggested Citation

  • Margaret Smith, 2004. "A model of the linked adoption of complementary technologies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(1), pages 91-99.
    • Handle: RePEc:taf:ecinnt:v:13:y:2004:i:1:p:91-99
    DOI: 10.1080/1043859042000156057
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/1043859042000156057
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1043859042000156057?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nancy L. Rose & Paul L. Joskow, 1990. "The Diffusion of New Technologies: Evidence from the Electric Utility Industry," RAND Journal of Economics, The RAND Corporation, vol. 21(3), pages 354-373, Autumn.
    2. Milgrom, Paul & Roberts, John, 1995. "The Economics of Modern Manufacturing: Reply," American Economic Review, American Economic Association, vol. 85(4), pages 997-999, September.
    3. Hannan, Timothy H & McDowell, John M, 1987. "Rival Precedence and the Dynamics of Technology Adoption: An Empirical Analysis," Economica, London School of Economics and Political Science, vol. 54(214), pages 155-171, May.
    4. Milgrom, Paul & Roberts, John, 1995. "Complementarities and fit strategy, structure, and organizational change in manufacturing," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 179-208, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cristiano Antonelli, 2006. "Diffusion as a Process of Creative Adoption," The Journal of Technology Transfer, Springer, vol. 31(2), pages 211-226, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gómez, Jaime & Vargas, Pilar, 2012. "Intangible resources and technology adoption in manufacturing firms," Research Policy, Elsevier, vol. 41(9), pages 1607-1619.
    2. Chul-Yong Lee & Jongsu Lee, 2009. "Demand Forecasting in the Early Stage of the Technology's Life Cycle Using Bayesian update," TEMEP Discussion Papers 200903, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Apr 2009.
    3. Robert J. Kauffman & James McAndrews & Yu-Ming Wang, 2000. "Opening the “Black Box” of Network Externalities in Network Adoption," Information Systems Research, INFORMS, vol. 11(1), pages 61-82, March.
    4. Spyros Arvanitis, 2005. "Computerization, workplace organization, skilled labour and firm productivity: Evidence for the Swiss business sector," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(4), pages 225-249.
    5. Donald Siegel & David Waldman & Albert Link, 1999. "Assessing the Impact of Organizational Practices on the Productivity of University Technology Transfer Offices: An Exploratory Study," NBER Working Papers 7256, National Bureau of Economic Research, Inc.
    6. Hernández-Murillo, Rubén & Llobet, Gerard & Fuentes, Roberto, 2010. "Strategic online banking adoption," Journal of Banking & Finance, Elsevier, vol. 34(7), pages 1650-1663, July.
    7. Bocquet, Rachel & Brossard, Olivier & Sabatier, Mareva, 2007. "Complementarities in organizational design and the diffusion of information technologies: An empirical analysis," Research Policy, Elsevier, vol. 36(3), pages 367-386, April.
    8. James G. Mulligan & Nilotpal Das, 2004. "Vintage Effects and the Diffusion of Time-Saving Technological Innovations: The Adoption of Optical Scanners by U.S. Supermarkets."," Working Papers 04-06, University of Delaware, Department of Economics.
    9. Jalal Akhavein & W. Scott Frame & Lawrence J. White, 2005. "The Diffusion of Financial Innovations: An Examination of the Adoption of Small Business Credit Scoring by Large Banking Organizations," The Journal of Business, University of Chicago Press, vol. 78(2), pages 577-596, March.
    10. Chul-Yong Lee & Min-Kyu Lee, 2017. "Demand Forecasting in the Early Stage of the Technology’s Life Cycle Using a Bayesian Update," Sustainability, MDPI, vol. 9(8), pages 1-15, August.
    11. Zaheer, Akbar & Castaner, Xavier & Souder, David, 2006. "To integrate or not to integrate ? complementarity, similarity, and acquisition value creation," HEC Research Papers Series 814, HEC Paris.
    12. Albert Yung-Hsu Liu & Ronald G. Ehrenberg & Jesenka Mrdjenovic, 2007. "Diffusion of Common Application Membership and Admissions Outcomes at American Colleges and Universities," NBER Working Papers 13175, National Bureau of Economic Research, Inc.
    13. Espen Bratberg & Alf Erling Risa, 1995. "Technological Diffusion Through Profit Seeking And Epidemic Information Processes," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 4(1), pages 27-40.
    14. Adela Luque, 2002. "An option-value approach to technology adoption in U.S. manufacturing: Evidence from microdata," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(6), pages 543-568.
    15. Rachel BOCQUET (IREGE, IUT-University of Savoie) & Olivier BROSSARD (LEREPS-GRES), 2006. "Information Technologies (IT) Adoption and Localized Knowledge Diffusion: an Empirical Study," Cahiers du GRES (2002-2009) 2006-17, Groupement de Recherches Economiques et Sociales.
    16. Elaine F. Frey, 2013. "Technology Diffusion and Environmental Regulation: The Adoption of Scrubbers by Coal-Fired Power Plants," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    17. James G. Mulligan & Nilotpal Das, 2006. "Item Pricing Laws, Supplier Behavior, and the Diffusion of Time-Saving Technology Innovations," Working Papers 06-11, University of Delaware, Department of Economics.
    18. Baptista, Rui, 2000. "Do innovations diffuse faster within geographical clusters?," International Journal of Industrial Organization, Elsevier, vol. 18(3), pages 515-535, April.
    19. Rui Baptista, 1999. "The Diffusion of Process Innovations: A Selective Review," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(1), pages 107-129.
    20. Elaine Frey, 2008. "Technology Diffusion and Environmental Regulation: The Adoption of Scrubbers by Coal-Fired Power Plants," NCEE Working Paper Series 200804, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Mar 2008.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ecinnt:v:13:y:2004:i:1:p:91-99. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GEIN20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.