Research paper understanding- L5 Multiple technology

Question 1

What was the paper and who were the authors?

Answer 1

Stoneman, P., Toivanen, O. (1997). The Diffusion of Multiple Technologies: An Empirical Study. Economics of Innovation and New Technology, 5: 1-17

Question 2

What was the research question?

Answer 2

The prime purpose is to see whether earlier findings on rank, stock, order, epidemic and multi-technology effects can be confirmed when a larger data sample is analysed.

Question 3

What was the motivation?

Answer 3

Understanding the process and the factors influencing. Also the rate of new technology adoption by firms (technology diffusion) is a crucial element in the full picture of the determinants of the rate and impact of technological advance. Theoretical literature on technological diffusion has made advances but empirical literature has tended to lag behind.

Question 4

What was the general finding?

Answer 4

Diffusion process is clearly industry specific, and the effects are similar across all technologies under study.

Question 5

What were the specific findings?

Answer 5

• There’s strong support for rank effect but less support for epidemic effect. Also poor performance of forward-looking variables suggests firms have considerable doubt upon the empirical importance of the order effect.
• Cross technology effects are important while there’s limited support for stock effects.
• Empirical relevance of the order effect still remains in doubt.
• Adoption decisions are affected by firm specific rank effects, industry specific factors, and by cross-technology considerations.