Lecture 1 & 2

Question 1

Define technical diffusion

Answer 1

Diffusion is the action or process of becoming spread over a wide area and it is the diffusion process of technological innovations that create the benefits of new technologies.

The study of technological diffusion processes begins at the point where an innovation is already adopted.

Question 2

What is Stoneman’s definition of technical diffusion?

Answer 2

Technological diffusion is the process by which new technologies spread across their potential market over time.

Question 3

What are stylized facts?

Answer 3

There are 4 factors defined as stylized facts:

1) Diffusion is a time intensive process.
2) Actors are heterogenous.
3) Technologies and firm characteristics change over time.
4) In many cases, diffusion paths an S-shaped curve.