Different technological domains have significantly different rates of performance improvement. Prior theory indicates that such differing rates should influence the relative speed of diffusion of the products embodying the different technologies since improvement in performance during the diffusion process increases the desirability of the product diffusing. However, there has not been a broad empirical attempt to examine this effect and to clarify the underlying cause. Therefore, this paper reviews the theoretical basis and focuses upon empirical tests of this effect across multiple products and their underlying technologies. The results for 18 different diffusing products show the expected relationship-faster diffusion for products based on more rapidly improving technological domains- between technological improvement and diffusion with strong statistical significance. The empirical examination also demonstrates that technological improvement does not slow down in the latter parts of diffusion when penetration does slow down. This finding indicates that diffusion slow down in the latter stages is due to market saturation effects and is not due to slowdown of performance improvement.
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Arizona State University(亚利桑那州立大学);University of Wisconsin(威斯康星大学);University of Chicago(芝加哥大学);University of California Santa Barbara(加州大学圣巴巴拉分校);University of Pennsylvania(宾夕法尼亚大学)
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Institute of Lithuanian Scientific Society(立陶宛科学学会研究所);Institute of Theoretical Physics and Astronomy, Vilnius University(维尔纽斯大学理论与天体物理研究所);Vilnius Gediminas Technical University (VILNIUS TECH)(维尔纽斯格迪米纳斯技术大学)