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Technological Diffusion Patterns and their Effects on Industrial Dynamics

Author

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  • Machiel van Dijk
  • Önder Nomaler

Abstract

By focussing on cumulativeness and spillover effects of technological knowledge, theories on technological regimes are predominantly supply side oriented in explaining industrial dynamics. This paper introduces demand side considerations as an additional explanation for industrial dynamics. Given variations in consumer preferences over quality and network sizes of technologies, and different degrees of compatibility between succeeding technologies, we investigate how the resulting differences in the timing and frequency of new technology adoptions effect the industrial dynamics. The simulation results of the model indeed suggest a relationship between different patterns of new technology adoptions and the dynamics of the firm population.

Suggested Citation

  • Machiel van Dijk & Önder Nomaler, 2000. "Technological Diffusion Patterns and their Effects on Industrial Dynamics," DRUID Working Papers 00-6, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    • Handle: RePEc:aal:abbswp:00-6
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    References listed on IDEAS

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    Cited by:

    1. Alex Coad, 2007. "Firm Growth: a Survey," Post-Print halshs-00155762, HAL.
    2. Coad, Alex, 2007. "Testing the principle of `growth of the fitter': The relationship between profits and firm growth," Structural Change and Economic Dynamics, Elsevier, vol. 18(3), pages 370-386, September.

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    More about this item

    Keywords

    tecnological knowledge; demand; consumer preferences; industrial dynamics;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General

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