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Why and how innovations get adopted: a tale of four models

Author

Listed:
  • Richard R Nelson
  • Alexander Peterhansl
  • Bhaven Sampat

Abstract

Scholars studying innovation have proposed several different models of the adoption process. This essay identifies two broad dimensions which differentiate the principal models: the strength of the evidence regarding an innovation's efficacy and the extent of increasing returns. In this essay, we propose that differences across these dimensions map to four models of the adoption/diffusion process prominent in the literature. We then analyze the diffusion patterns of six well-studied innovations in terms these variables, and discuss which models seems to fit them best. Copyright 2004, Oxford University Press.

Suggested Citation

  • Richard R Nelson & Alexander Peterhansl & Bhaven Sampat, 2004. "Why and how innovations get adopted: a tale of four models," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 13(5), pages 679-699, October.
    • Handle: RePEc:oup:indcch:v:13:y:2004:i:5:p:679-699
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    Citations

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    Cited by:

    1. Bryson, Alex & Gomez, Rafael & Kretschmer, Tobias, 2005. "Catching a wave: the adoption of voice and high commitment workplace practices in Britain: 1984-1998," LSE Research Online Documents on Economics 19909, London School of Economics and Political Science, LSE Library.
    2. Bodas Freitas, Isabel Maria, 2008. "Sources of differences in the pattern of adoption of organizational and managerial innovations from early to late 1990s, in the UK," Research Policy, Elsevier, vol. 37(1), pages 131-148, February.
    3. Isabel Maria Bodas Freitas, 2011. "Technological learning environments and organizational practices--cross-sectoral evidence from Britain," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(5), pages 1439-1474, October.
    4. Vaidyanathan, Geeta & Sankaranarayanan, Ramani & Yap, Nonita T., 2019. "Bridging the chasm – Diffusion of energy innovations in poor infrastructure starved communities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 99(C), pages 243-255.
    5. Alexander Frenzel Baudisch & Hariolf Grupp, 2006. "Evaluating the market potential of innovations: A structured survey of diffusion models," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 21/2006, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
    6. Bodas Freitas, Isabel Maria & Dantas, Eva & Iizuka, Michiko, 2012. "The Kyoto mechanisms and the diffusion of renewable energy technologies in the BRICS," Energy Policy, Elsevier, vol. 42(C), pages 118-128.
    7. Beniamino Callegari & Christophe Feder, 2022. "The long-term economic effects of pandemics: toward an evolutionary approach [Epidemics and trust: the case of the Spanish flu]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(3), pages 715-735.
    8. Giorgio Fagiolo, 2005. "A Note on Equilibrium Selection in Polya-Urn Coordination Games," Economics Bulletin, AccessEcon, vol. 3(45), pages 1-14.
    9. Bonnin Roca, Jaime & O'Sullivan, Eoin, 2020. "Seeking coherence between barriers to manufacturing technology adoption and innovation policy," International Journal of Production Economics, Elsevier, vol. 230(C).
    10. Haas, David & Rainer, Andreas, 2014. "Diffusion in a simple classical model. Micro decisions and macro outcomes," Centro Sraffa Working Papers CSWP6, Centro di Ricerche e Documentazione "Piero Sraffa".
    11. Hohnisch, Martin & Pittnauer, Sabine & Stauffer, Dietrich, 2006. "A Percolation-Based Model Explaining Delayed Take-Off in New-Product Diffusion," Bonn Econ Discussion Papers 9/2006, University of Bonn, Bonn Graduate School of Economics (BGSE).
    12. Trieste, Leopoldo & Geisler, Elie & Turchetti, Giuseppe, 2022. "Columbus' egg and the engineer's effect in forecasting solutions adoption," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    13. repec:dau:papers:123456789/5014 is not listed on IDEAS
    14. Stephen Murray & Cesar Aguado & Victor M. Castaño, 2022. "In-Company Technical Training in Developing Countries," Journal of Education and Training, Macrothink Institute, vol. 9(2), pages 82-99, August.
    15. Giovanni Dosi & Richard Nelson, 2013. "The Evolution of Technologies: An Assessment of the State-of-the-Art," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 3(1), pages 3-46, June.
    16. 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.
    17. Danny García, 2007. "Innovation and Growth: A Survey of the Literature and a Case Study for Latin America," Revista Ecos de Economía, Universidad EAFIT, October.
    18. Sylvain Bureau, 2006. "La professionnalisation des nouveaux métiers liés aux technologies de l'information et de la communication : un déterminant dans les processus d'organisation d'une fonction ? Le cas des technologies w," Post-Print hal-00137437, HAL.
    19. RAITERI Emilio, 2015. "A time to nourish? Evaluating the impact of innovative public procurement on technological generality through patent data," Cahiers du GREThA (2007-2019) 2015-05, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    20. repec:ebl:ecbull:v:3:y:2005:i:45:p:1-14 is not listed on IDEAS
    21. Erik Lundmark & Alf Westelius, 2014. "Entrepreneurship as Elixir and Mutagen," Entrepreneurship Theory and Practice, , vol. 38(3), pages 575-600, May.
    22. E. O. Chukwuma-Nwuba, 2013. "The Failure of Most Entrepreneurial Technological Innovations to Diffuse: What the Literatures Say," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 1(11), pages 463-470.
    23. Costa, Álvaro & Fernandes, Ruben, 2012. "Urban public transport in Europe: Technology diffusion and market organisation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(2), pages 269-284.
    24. Strong, Derek Ryan, 2017. "The Early Diffusion of Smart Meters in the US Electric Power Industry," Thesis Commons 7zprk, Center for Open Science.
    25. Francesco Bogliacino & Giorgio Rampa, 2010. "Monopolistic competition and new products: a conjectural equilibrium approach," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 5(1), pages 55-76, June.

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