M. Karshenas et Pl. Stoneman, RANK, STOCK, ORDER, AND EPIDEMIC EFFECTS IN THE DIFFUSION OF NEW PROCESS TECHNOLOGIES - AN EMPIRICAL-MODEL, The Rand journal of economics, 24(4), 1993, pp. 503-528
In this article we construct a general duration model of technology ad
option that incorporates the main factors discussed in different theor
ies of diffusion of new process technologies. The model is applied to
data on diffusion of CNC in the UK engineering industry. Although we f
ind strong evidence in support of rank and endogenous learning effects
, there seems to be little evidence in support of the stock and order
effects. The main factors affecting the diffusion of CNC are found to
be endogenous learning, firm size, industry growth rates, the cost of
the technology, and expected changes in the cost of the technology.