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The Diffusion of New Technology

In: Handbook of the Economics of Innovation

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  • Stoneman, Paul
  • Battisti, Giuliana

Abstract

Technological diffusion is defined widely as the process by which the market for a new technology changes over time and from which production and usage patterns of new products and production processes result. This chapter looks at both the demand and supply sides of this process at differing levels of aggregation, from the worldwide to the interfirm or household level, via consideration of intensive and extensive margins. Realized diffusion patterns are discussed and theoretical underpinnings of the diffusion process explored. Econometric models, data availability, and estimation are also considered although there is little attempt to be comprehensive re the latter given existing surveys. Diffusion policy is also addressed and some comments on future research directions offered.

Suggested Citation

  • Stoneman, Paul & Battisti, Giuliana, 2010. "The Diffusion of New Technology," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 733-760, Elsevier.
  • Handle: RePEc:eee:haechp:v2_733
    DOI: 10.1016/S0169-7218(10)02001-0
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    5. Dosi, Giovanni & Nelson, Richard R., 2010. "Technical Change and Industrial Dynamics as Evolutionary Processes," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 51-127, Elsevier.
    6. Gisela Rua, 2014. "Diffusion of Containerization," Finance and Economics Discussion Series 2014-88, Board of Governors of the Federal Reserve System (U.S.).
    7. Antonelli, Cristiano, 2016. "Technological congruence and the economic complexity of technological change," Structural Change and Economic Dynamics, Elsevier, vol. 38(C), pages 15-24.
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    15. David Nascimento & Aurora A.C. Teixeira, 2010. "Recent trends in the economics of innovation literature through the lens of Industrial and Corporate Change," FEP Working Papers 395, Universidade do Porto, Faculdade de Economia do Porto.
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    More about this item

    Keywords

    diffusion policy; extensive margin; innovation; intensive margin; new processes; new products; technological diffusion;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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