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Divergent diffusion: Understanding the interaction between institutions,firms, networks and knowledge in the international adoption of technology
Affiliation:1. George P. and Cynthia W. Mitchell Institute for Fundamental Physics and Astronomy, Texas A&M University, College Station, TX 77843, USA;2. Key Laboratory of Theoretical Physics, Institute of Theoretical Physics, Chinese Academy of Sciences, Beijing 100190, China;3. School of Physical Sciences, University of Chinese Academy of Sciences, No. 19A Yuquan Road, Beijing 100049, China;4. Department of Physics and Engineering Physics, The University of Tulsa, Tulsa, OK 74104, USA;5. Department of Chemistry and Physics, Louisiana State University, Shreveport, LA 71115, USA;6. Astroparticle Physics Group, Houston Advanced Research Center (HARC), Mitchell Campus, Woodlands, TX 77381, USA;7. Academy of Athens, Division of Natural Sciences, 28 Panepistimiou Avenue, Athens 10679, Greece;1. Department of Business Administration School of Management Fudan University, Siyuan Building, 670 Guoshun Road, Shanghai 200433, PR China;2. Leeds University Business School, Maurice Keyworth Building, University of Leeds, Leeds LS2 9JT, UK;3. School of Humanities and Social Sciences, Nanjing University of Science & Technology, Nanjing 210094, Jiangsu Province, PR China;1. Department of Business Studies, Uppsala University, Sweden;2. Public University of Navarre, Spain;1. Department of Management, The Chinese University of Hong Kong, Shatin, NT, Hong Kong;2. Lubar School of Business, University of Wisconsin–Milwaukee, Milwaukee, WI 53211, USA;3. Mays Business School, Texas A&M University, College Station, TX 77843, USA;4. Queen''s School of Business, Queen''s University, Kingston, Ontario, Canada K7L 3N6;5. Peking University, HSBC Business School, University Town, Nanshan District, Shenzhen 518055, China
Abstract:Why do certain technologies diffuse globally while others spread only within certain areas of the world? I analyze the uneven process of international technology diffusion by focusing on how institutions moderate the impact of firm, network, and knowledge characteristics on the adoption of technology. The study shows that better economic institutions lower transformation costs; that similarities across social institutions minimize transmission costs; and that effective political institutions reduce transaction costs for technology diffusion. The impact of each institution-type on the diffusion process is based on the relative weight of the three different knowledge dimensions embedded in the technology. Complex technologies are most affected by economic institutions; tacit technologies are most dependent on social institutions; and systemic technologies are most influenced by political institutions.
Keywords:International technology diffusion  Institutions  Innovation  Technology
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