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Firms and Innovation Diffusion: Examples from Banking

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  • E J Malecki

    (Department of Geography, University of Oklahoma, Norman, Oklahoma 73019, USA)

Abstract

The diffusion of innovations used by firms themselves and those marketed to consumers are considered within a single framework based on the firm. This framework is represented by a general model which balances innovative and aggressive behavior, common to small firms, against the ability to bear the cost and risk of innovation adoption more common to large firms. A similar model for city-size diffusion patterns, based on the fact that large cities are risk-minimizing locations, contrasts with traditional hierarchical models which assume that large cities are usually the sites of first adoption. Examples of two innovations in the American banking industry were analyzed to test the models. The results suggest that traditional strict size-ordered models for firms and urban systems are not always appropriate, especially for innovations by firms.

Suggested Citation

  • E J Malecki, 1977. "Firms and Innovation Diffusion: Examples from Banking," Environment and Planning A, , vol. 9(11), pages 1291-1305, November.
    • Handle: RePEc:sae:envira:v:9:y:1977:i:11:p:1291-1305
    DOI: 10.1068/a091291
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    References listed on IDEAS

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    1. Ray, George F., 1969. "The diffusion of new processes," Intereconomics – Review of European Economic Policy (1966 - 1988), ZBW - Leibniz Information Centre for Economics, vol. 4(11), pages 356-358.
    2. Edwin Mansfield, 1973. "Determinants of the Speed of Application of New Technology," International Economic Association Series, in: B. R. Williams (ed.), Science and Technology in Economic Growth, chapter 8, pages 199-226, Palgrave Macmillan.
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    Cited by:

    1. Amnon Frenkel & Daniel Shefer & Knut Koschatzky & Gunter Walter, 2001. "Firm Characteristics, Location and Regional Innovation: A Comparison Between Israeli and German Industrial Firms," Regional Studies, Taylor & Francis Journals, vol. 35(5), pages 415-429.
    2. Amnon Frenkel & Daniel Shefer & Knut Koschatzky & Gunter Walter, 1998. "Industrial characteristics, production milieu and regional innovation: A comparison of Israel and German industrial plants," ERSA conference papers ersa98p383, European Regional Science Association.

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