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A study on the relationship between technology diffusion and new product diffusion
Authors:Misuk Lee [Author Vitae]  Kwangduk Kim [Author Vitae]  Youngsang Cho [Author Vitae]
Affiliation:a Korea Institute of Science & Technology Evaluation and Planning, 68, Mabang-gil, Seocho-gu, Seoul, 137-130, South Korea
b Samjeong KPMG Advisory Inc., Gangnam Finance Center, 10th Floor, 737 Yeoksam dong, Gang Nam Gu, Seoul, 135-984, South Korea
c Institute of Industrial Management Research, School of Management, Inje University, 607 Eobang-dong, Gimhae-si, Gyeongsangnam-do, 621-749, South Korea
Abstract:This study investigates the relationship between “technology diffusion” and “new product diffusion”. We define “technology diffusion” as a knowledge spillover process, which is represented by patent citation, and “new product diffusion” as the spread of a new product that has been developed by the application of patented technology. To investigate the relationship between the two types of diffusion, we use patent citation data of code division multiple access (CDMA) technology and market sales data of mobile phones in South Korea for the analysis. The results show that the diffusion of technology through patent citation could be successfully explained by empirical analysis, for which the Bass diffusion model was used. Moreover, we can find out if technology diffusion can be the leading indicator of a new product's diffusion before its launching; in other words, before the commercialization of the patent.
Keywords:Technology spillover   New product diffusion   Patent citation   Bass model
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