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Adoption of New Technology

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Author Info
Bronwyn Hall (Department of Economics, University of California, Berkeley)
Beethika Khan (Department of Economics, University of California, Berkeley)

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Abstract

The contribution of new technology to economic growth can only be realized when and if the new technology is widely diffused and used. Diffusion itself results from a series of individual decisions to begin using the new technology, decisions which are often the result of a comparison of the uncertain benefits of the new invention with the uncertain costs of adopting it. An understanding of the factors affecting this choice is essential both for economists studying the determinants of growth and for the creators and producers of such technologies. Section II of this article discusses the modeling of diffusion and Sections III to V explore the determinants of diffusion and the evidence for their importance.

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Paper provided by Department of Economics, Institute for Business and Economic Research, UC Berkeley in its series Department of Economics, Working Paper Series with number 1055.

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Date of creation: 03 May 2003
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Handle: RePEc:cdl:econwp:1055

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Keywords: technology adoption diffusion network goods technological standards real options

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  2. Francesco Caselli & Wilbur John Coleman II, 2001. "Cross-Country Technology Diffusion: The Case of Computers," American Economic Review, American Economic Association, vol. 91(2), pages 328-335, May. [Downloadable!] (restricted)
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  3. David, Paul A, 1990. "The Dynamo and the Computer: An Historical Perspective on the Modern Productivity Paradox," American Economic Review, American Economic Association, vol. 80(2), pages 355-61, May. [Downloadable!] (restricted)
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  5. Philip M. Parker & Lars-Hendrik Roller, 1997. "Collusive Conduct in Duopolies: Multimarket Contact and Cross-Ownership in the Mobile Telephone Industry," RAND Journal of Economics, The RAND Corporation, vol. 28(2), pages 304-322, Summer. [Downloadable!] (restricted)
  6. Katz, Michael L & Shapiro, Carl, 1994. "Systems Competition and Network Effects," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 93-115, Spring. [Downloadable!] (restricted)
  7. Neil Gandal, 1994. "Hedonic Price Indexes for Spreadsheets and an Empirical Test for Network Externalities," RAND Journal of Economics, The RAND Corporation, vol. 25(1), pages 160-170, Spring. [Downloadable!] (restricted)
  8. Hannan, Timothy H & McDowell, John M, 1984. "Market Concentration and the Diffusion of New Technology in the Banking Industry," The Review of Economics and Statistics, MIT Press, vol. 66(4), pages 686-91, November. [Downloadable!] (restricted)
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  14. Shane M. Greenstein, 1993. "Did Installed Base Given an Incumbent Any (Measurable) Advantages in Federal Computer Procurement?," RAND Journal of Economics, The RAND Corporation, vol. 24(1), pages 19-39, Spring. [Downloadable!] (restricted)
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  16. Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall. [Downloadable!] (restricted)
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  19. Nicholas Economides & Charles Himmelberg, 1995. "Critical Mass and Network Size with Application to the US Fax Market," Working Papers 95-11, New York University, Leonard N. Stern School of Business, Department of Economics. [Downloadable!]
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  22. Erik Brynjolfsson & Chris F. Kemerer, 1993. "Network Externalities in Microcomputer Software: An Econometric Analysis of the Spreadsheet Market," Working Paper Series 158, MIT Center for Coordination Science. [Downloadable!]
  23. Gruber, Harald & Verboven, Frank, 2001. "The diffusion of mobile telecommunications services in the European Union," European Economic Review, Elsevier, vol. 45(3), pages 577-588, March. [Downloadable!] (restricted)
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  24. Thomas N. Hubbard, 1998. "Why Are Process Monitoring Technologies Valuable? The Use of On-Board Information Technology in the Trucking Industry," NBER Working Papers 6482, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  25. Baker, Laurence C., 2001. "Managed care and technology adoption in health care: evidence from magnetic resonance imaging," Journal of Health Economics, Elsevier, vol. 20(3), pages 395-421, May. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jonathan Beck & Michal Grajek & Christian Wey, 2005. "Hypermarket Competition and the Diffusion of Retail Checkout Barcode Scanning," Discussion Papers of DIW Berlin 523, DIW Berlin, German Institute for Economic Research. [Downloadable!]
    Other versions:
  2. Michele Moretto, 2007. "Competition and Irreversible Investments under Uncertainty," "Marco Fanno" Working Papers 0058, Dipartimento di Scienze Economiche "Marco Fanno". [Downloadable!]
  3. James Markusen & Thomas F. Rutherford, 2004. "Learning on the Cheap and Quick: Gains from trade through imported expertise," DEGIT Conference Papers c009_002, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  4. Markusen, James R. & Rutherford, Thomas F., 2005. "Learning on the quick and cheap : gains from trade through imported expertise," Discussion Paper Series 1: Economic Studies 2005,14, Deutsche Bundesbank, Research Centre. [Downloadable!]
    Other versions:
  5. Paul Beaudry & Patrick Francois, 2007. "The Economics of Inefficient Technology Use," NBER Working Papers 13500, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Toshihiko Mukoyama, 2004. "Rosenberg's "Learning by Using" and Technology Diffusion," Working Papers 05003, Concordia University, Department of Economics. [Downloadable!]
    Other versions:
  7. Maria A. Cunha-e-Sá & Ana Balcão Reis & Catarina Roseta-Palma, 2004. "Technology Adoption in Nonrenewable Resource Management," Economic Working Papers at Centro de Estudios Andaluces E2004/16, Centro de Estudios Andaluces. [Downloadable!]
  8. 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. [Downloadable!]
  9. Orlando Gomes, 2005. "Knowledge creation and technology difusion: a framework to understand economic growth," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Economics Department, vol. 20(2), pages 41-61, December. [Downloadable!]
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