Cambridge Journal of Economics Advance Access originally published online on January 10, 2005
Cambridge Journal of Economics 2005 29(3):359-379; doi:10.1093/cje/beh045
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The reaper and the scanner: indivisibility-led incremental innovations and the adoption of new technologies
* Università degli studi di Brescia and CESPRI-Università L. Bocconi, Milan. Various drafts of this paper were presented and helpfully discussed at the European Meeting on Applied Evolutionary Economics in Grenoble, France; the Annual Meeting of the Società Italiana degli Economisti in Ancona, Italy; the European Summer School on Industrial Dynamics in Cargese, Corsica; as well as seminars at SPRU, University of Sussex, UK, and the Max-Planck-Institut zur Erforschung von Wirtschaftssystemen, Jena, Germany. Extensive comments have come from Bruce Tether, Paul David, Alan Olmstead and two anonymous referees. Work on this paper was made possible by a Visiting Fellowship granted by the Centre for Research on Innovation and Competition (CRIC), Manchester UK. The usual disclaimers apply
Address for correspondence: CESPRI-Università L. Bocconi, via Sarfatti 25, 20136 Milan, Italy; email: lissoni{at}ing.unibs.it
Widespread adoption of a new capital-embodied technology requires a continuous flow of incremental innovations. A few of them address the key problem of indivisibility, by making renting the new machine a viable alternative to buying it, or by dividing it up into modular elements. Such incremental innovations differ from the learning-by-doing effects usually considered by diffusion models, and greatly affect the structure of the adopting industry. The case for keeping them in due account is made by revisiting Paul David's classic paper on the McCormick reaper, by criticising the subsequent evolution of threshold models of adoption, and by summarising my own findings on the diffusion of electronic pre-press devices.
Key Words: Adoption Diffusion Incremental innovations Industrial dynamics
JEL classifications: O31, 033
Manuscript received September 1, 2000; final version received September 29, 2003.