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Rosenberg's "Learning by Using" and Technology Diffusion

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Author Info
Toshihiko Mukoyama () (Department of Economics, Concordia University)

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Abstract

This paper formulates Rosenberg's (1982) "learning by using" as a stochastic process. The producer of machines learns from the experience of users. Due to this learning, the quality of machines improves over time. It turns out that the process of this improvement approximately takes an exponential form. This improvement process, combined with the growth of demand due to the improvement, can produce an S-shape diffusion curve of machines. Strong demand and advancement of communication technology increase the diffusion speed. The distributional property of the stochastic process and the implications for inequality across machine users are also explored.

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Publisher Info
Paper provided by Concordia University, Department of Economics in its series Working Papers with number 05003.

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Length: 38 pages
Date of creation: Aug 2004
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Handle: RePEc:crd:wpaper:05003

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Related research
Keywords: Learning by Using; Technology Diffusion;

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Find related papers by JEL classification:
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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  1. Jovanovic, Boyan & Lach, Saul, 1989. "Entry, Exit, and Diffusion with Learning by Doing," American Economic Review, American Economic Association, vol. 79(4), pages 690-99, September. [Downloadable!] (restricted)
    Other versions:
  2. Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 551-75, August. [Downloadable!] (restricted)
  3. Geroski, P. A., 2000. "Models of technology diffusion," Research Policy, Elsevier, vol. 29(4-5), pages 603-625, April. [Downloadable!] (restricted)
    Other versions:
  4. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  5. Parente Stephen L., 1994. "Technology Adoption, Learning-by-Doing, and Economic Growth," Journal of Economic Theory, Elsevier, vol. 63(2), pages 346-369, August. [Downloadable!] (restricted)
  6. Griliches, Zvi & Regev, Haim, 1995. "Firm productivity in Israeli industry 1979-1988," Journal of Econometrics, Elsevier, vol. 65(1), pages 175-203, January. [Downloadable!] (restricted)
  7. Young, Alwyn, 1993. "Invention and Bounded Learning by Doing," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 443-72, June. [Downloadable!] (restricted)
  8. Young, Alwyn, 1991. "Learning by Doing and the Dynamic Effects of International Trade," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 369-405, May. [Downloadable!] (restricted)
  9. Sherwin Rosen, 1982. "Authority, Control, and the Distribution of Earnings," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 311-323, Autumn. [Downloadable!] (restricted)
  10. Stephen L. Parente, 2000. "Learning-by-Using and the Switch to Better Machines," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 3(4), pages 675-703, October. [Downloadable!] (restricted)
  11. Toshihiko Mukoyama, 2004. "Diffusion and Innovation of New Technologies under Skill Heterogeneity," Journal of Economic Growth, Springer, vol. 9(4), pages 451-479, December. [Downloadable!]
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Cited by:
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  1. Greenwood, Jeremy & Guner, Nezih, 2008. "Social Change," IZA Discussion Papers 3485, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Jeremy Greenwood & Nezih Guner, 2009. "Social Change: The Sexual Revolution," RCER Working Papers 550, University of Rochester - Center for Economic Research (RCER). [Downloadable!]
    Other versions:
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