Localised Technological Change: The Interaction Between The Generation And The Diffusion Of New Technologies

The main contribution of this paper is to explore the role played by heterogeneity in supply and demand in selecting technological paths amongst many different alternatives, and in localising technological change in niches of potential adopters. Technological change is therefore inherently localised. For given levels of technological superiority, the innovations that are selected during the diffusion process are shown to be sensitive to the specificities of the production process at those points.