Technology adoption from hybrid corn to beta blockers

In his classic 1957 study of hybrid corn, Griliches emphasized the importance of economic incentives and profitability in the adoption of new technology, and this focus has been continued in the economics literature. But there is a distinct literature with roots in sociology emphasizing the structure of organizations, informal networks, and ““change agents.”” We return to a forty-year-old debate between Griliches and the sociologists by considering state-level factors associated with the adoption of a variety of technological innovations: hybrid corn and tractors in the first half of the 20th century, computers in the 1990s, and the treatment of heart attacks during the last decade. First, we find that some states consistently adopted new effective technology, whether hybrid corn, tractors, or effective treatments for heart attacks such as Beta Blockers. Second, the adoption of these new highly effective technologies was closely associated with social capital and state-level 1928 high school graduation rates, but not per capita income, density, or (in the case of Beta Blockers) expenditures on heart attack patients. Economic models are useful in identifying why some regions are more likely to adopt early, but sociological barriers -- perhaps related to a lack of social capital or informational networks -- can potentially explain why other regions lag far behind.

Technology Adoption From Hybrid Corn to Beta Blockers

In his classic 1957 study of hybrid corn, Griliches emphasized the importance of economic incentives and profitability in the adoption of new technology, and this focus has been continued in the economics literature. But there is a distinct literature with roots in sociology emphasizing the structure of organizations, informal networks, and "change agents." We return to a forty-year-old debate between Griliches and the sociologists by considering state-level factors associated with the adoption of a variety of technological innovations: hybrid corn and tractors in the first half of the 20th century, computers in the 1990s, and the treatment of heart attacks during the last decade. First, we find that some states consistently adopted new effective technology, whether hybrid corn, tractors, or effective treatments for heart attacks such as Beta Blockers. Second, the adoption of these new highly effective technologies was closely associated with social capital and state-level 1928 high school graduation rates, but not per capita income, density, or (in the case of Beta Blockers) expenditures on heart attack patients. Economic models are useful in identifying why some regions are more likely to adopt early, but sociological barriers -- perhaps related to a lack of social capital or informational networks -- can potentially explain why other regions lag far behind.

Competing contagion processes: Complex contagion triggered by simple contagion

Empirical evidence reveals that contagion processes often occur with competition of simple and complex contagion, meaning that while some agents follow simple contagion, others follow complex contagion. Simple contagion refers to spreading processes induced by a single exposure to a contagious entity while complex contagion demands multiple exposures for transmission. Inspired by this observation, we propose a model of contagion dynamics with a transmission probability that initiates a process of complex contagion. With this probability nodes subject to simple contagion get adopted and trigger a process of complex contagion. We obtain a phase diagram in the parameter space of the transmission probability and the fraction of nodes subject to complex contagion. Our contagion model exhibits a rich variety of phase transitions such as continuous, discontinuous, and hybrid phase transitions, criticality, tricriticality, and double transitions. In particular, we find a double phase transition showing a continuous transition and a following discontinuous transition in the density of adopted nodes with respect to the transmission probability. We show that the double transition occurs with an intermediate phase in which nodes following simple contagion become adopted but nodes with complex contagion remain susceptible.Comment: 9 pages, 4 figure

Spatio-Temporal Patterns for a Generalized Innovation Diffusion Model

We construct a model of innovation diffusion that incorporates a spatial component into a classical imitation-innovation dynamics first introduced by F. Bass. Relevant for situations where the imitation process explicitly depends on the spatial proximity between agents, the resulting nonlinear field dynamics is exactly solvable. As expected for nonlinear collective dynamics, the imitation mechanism generates spatio-temporal patterns, possessing here the remarkable feature that they can be explicitly and analytically discussed. The simplicity of the model, its intimate connection with the original Bass' modeling framework and the exact transient solutions offer a rather unique theoretical stylized framework to describe how innovation jointly develops in space and time.Comment: 20 pages, 4 figure

Innovation and Diffusion

The contribution made by innovation and new technologies to economic growth and welfare is largely determined by the rate and manner by which innovations diffuse throughout the relevant population, but this topic has been a somewhat neglected one in the economics of innovation. This chapter, written for a handbook on innovation, provides a historical and comparative perspective on diffusion that looks at the broad determinants of diffusion, economic, social, and institutional, viewed from a microeconomic perspective. A framework for thinking about these determinants is presented along with a brief nontechnical review of modeling strategies used in different social scientific literatures. It concludes with a discussion of gaps in our understanding and potential future research questions.

Knowledge, learning, networks and performance of firms in knowledge-based economies

The paper examines the issue of knowledge as a public good, and, therefore, the question of open knowledge. Moreover, it analyses the crucial relationship between knowledge and learning and, more specifically, the relationship between technological knowledge, learning and the environment. Thus the construct of absorptive capacity is investigated and the related dynamic capability approach is also considered. Finally, the paper looks at the networks and investigate the rationale of networking. Therefore, in this context, the paper discusses the issue of competition/collaboration duality, since alliance is also a complex phenomenon, where collaborative behaviours and competitive relations coexist; a more eclectic view is, thus, offered on this issue with the aim to provide a new theoretical framework of inter-firm relations.Firms; Knowledge; Learning; Networks

How change agents and social capital influence the adoption of innovations among small farmers: Evidence from social networks in rural Bolivia

"This paper presents results from a study that identified patterns of social interaction among small farmers in three agricultural subsectors in Bolivia—fish culture, peanut production, and quinoa production—and analyzed how social interaction influences farmers' behavior toward the adoption of pro-poor innovations. Twelve microregions were identified, four in each subsector, setting the terrain for an analysis of parts of social networks that deal with the diffusion of specific sets of innovations. Three hundred sixty farmers involved in theses networks as well as 60 change agents and other actors promoting directly or indirectly the diffusion of innovations were interviewed about the interactions they maintain with other agents in the network and the sociodemographic characteristics that influence their adoption behavior. The information derived from this data collection was used to test a wide range of hypotheses on the impact that the embeddedness of farmers in social networks has on the intensity with which they adopt innovations. Evidence provided by the study suggests that persuasion, social influence, and competition are significant influences in the decisions of farmers in poor rural regions in Bolivia to adopt innovations. The results of this study are meant to attract the attention of policymakers and practitioners who are interested in the design and implementation of projects and programs fostering agricultural innovation and who may want to take into account the effects of social interaction and social capital. Meanwhile, scholars of the diffusion of innovations may find evidence to further embrace the complexity and interdependence of social interactions in their models and approaches." from Author's AbstractSocial networks, Agricultural innovation, Change agent, Social capital,

Networks, Hierarchies, and Markets: Aggregating Collective Problem Solving in Social Systems

How do decentralized systems collectively solve problems? Here we explore the interplay among three canonical forms of collective organization--markets, networks, and hierarchies--in aggregating decentralized problem solving. We examine these constructs in the context of how the offices of members of Congress individually and collectively wrestle with the Internet, and, in particular, their use of official websites. Each office is simultaneously making decisions about how to utilize their website. These decisions are only partially independent, where offices are looking at each other for lessons, following the same directives from above about what to do with the websites, and confront the same array of potential vendors to produce their website. Here we present the initial results from interviews with 99 Congressional offices and related survey of 100 offices about their decisions regarding how to use official Member websites. Strikingly, we find that there are relatively few efforts by offices to evaluate what constituents want or like on their websites. Further, we find that diffusion occurs at the "tip of the iceberg": offices often look at each others' websites (which are publicly visible), but rarely talk to each other about their experiences or how they manage what is on their websites (which are not publicly visible). We also find that there are important market drivers of what is on websites, with the emergence of a small industry of companies seeking to serve the 440 Members. Hierarchical influences--through the House and through the party conferences--also constrain and subsidize certain practices.