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Adoption of New Technology

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  • Bronwyn H. Hall

    (Department of Economics, University of California, Berkeley)

  • Beethika Khan

    (Department of Economics, University of California, Berkeley)

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.

Suggested Citation

  • Bronwyn H. Hall & Beethika Khan, 2004. "Adoption of New Technology," Development and Comp Systems 0401001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpdc:0401001
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    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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