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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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Right arrow L64 - Other Machinery; Business Equipment; Armaments
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Right arrow O31 - Innovation and Invention: Processes and Incentives
Right arrow O33 - Technological Change: Choices and Consequences; Diffusion Processes
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© The Author 2005. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved.

The reaper and the scanner: indivisibility-led incremental innovations and the adoption of new technologies

Francesco Lissoni*

* 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.


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