A Model of the Diffusion of Technology into SMEs

The paper considers technology diffusion and develops a model at the level of theSME. Technology diffusion in the form of new or improved technology, thetransmission of knowledge or technical expertise is investigated. This involves spilloversthrough formal and informal networks enabling learning by interacting and anabsorptive capacity to assimilate new technology developed elsewhere. A model oftechnology diffusion is developed including external sources, channels of technologytransfer, and mechanisms involved in the transfer of technology into the innovativeSME. The model is related not only to “best practice” but also to cases where “low”activity can be improved. Implications for policy relevant to technology andentrepreneurship arising from the model are also investigated and conclusions aredrawn.[...]