Rank, Stock, Order, and Epidemic Effects in the Diffusion of New Process Technologies: An Empirical Model

Abstract

In this paper we set up a general duration model of technology adoption which incorporates the main factors discussed in the different side theories if diffusion of new process technologies. The model is applied to the data on diffusion of CNC in the UK engineering industry. It is found that while there is strong evidence for the rank and endogenous learning effects, there seems to be little evidence in the support of the stock and order effects, as characterized by the game theoretic models.