The Diffusion Of Multiple Technologies: An Empirical Study

The simultaneous diffusion of several technologies is studied. We build a modcl that encompasses recent theoretical arguments on diffusion and cxtend these to the multipie technologies case. The model is estimated using a panel of data on UK manufacturing industries relating to the diffusion of five technologies: Computer Numerically Controlled machine tools, Numerically Controlled machine tools. coated carbide tools, computers and microprocessors. We find mixed evidence on a stock effect and some support for an epidemic effect but less than in earlier studies. We are unable to and empirical support for order effects or expectational variables. Our results show that technological and strategic interdependencies between individual technologies do afect thc diffusion path.