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A Theory of Technology Diffusion

Author

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  • Toshihiko Mukoyama

    (Concordia University and CIREQ)

Abstract

What determines the speed of the technology diffusion? What are the consequences of diffusion? This paper presents a model to address these questions. Skilled machine-users adopt a new technology first, while unskilled users wait until machines become more reliable and accessible. The quality improvement of machines is the engine of diffusion, and it is carried out by the machine producer. The speed of diffusion is affected by the skill distribution in the economy. At any point in time, the machine producer can start producing a new generation of machines. The timing of this event is influenced by the skill distribution.

Suggested Citation

  • Toshihiko Mukoyama, 2003. "A Theory of Technology Diffusion," Macroeconomics 0303010, EconWPA, revised 03 Jun 2003.
  • Handle: RePEc:wpa:wuwpma:0303010
    Note: Type of Document - Acrobat PDF; prepared on IBM PC; to print on HP/PostScript; pages: 38 ; figures: included. pdf, 38 pages, figures included
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    File URL: http://econwpa.repec.org/eps/mac/papers/0303/0303010.pdf
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    References listed on IDEAS

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    Cited by:

    1. Orlando Gomes, 2005. "Knowledge creation and technology difusion: a framework to understand economic growth," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines, vol. 20(2), pages 41-61, December.
    2. Mehmet Ali Ekemen & Ayta? Y?ld?r?m, 2016. "E-Business Usage in Tourism Industry: Drivers and Consequences," Business and Economic Research, Macrothink Institute, vol. 6(2), pages 302-330, December.

    More about this item

    Keywords

    Technology Diffusion; Skill; Quality Improvement; Learning by Using; R&D; Innovation;

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • 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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