Innovative cardiological technologies: a model of technology adoption, diffusion and competition

Technology diffusion of medical innovations is a complex evolutionary process. The specificities on the demand as well as on the supply side have a crucial impact on their diffusion paths. This paper aims to investigate the diffusion process of two competing innovative technologies in the health care sector. The case of percutaneous aortic valve replacement in heart medicine serves as an example. A simple model illustrates the decision-making process of adopters and suppliers that shape the evolution of a new market. Thereby, network externalities and individual learning bias the market outcome such as increasing returns to adoption and may lead to technological 'lock-ins'.technological change, adoption decisions, diffusion processes, competing technologies, network externalities, medical equipment,