Diffusion of Innovation staying ahead of the curve

1
Diffusion of Innovation staying ahead of the
curve
LATE ADOPTERS
MASS ADOPTERS (common use)
EARLY ADOPTERS
RD
DISUSE or OBSOLENSENCE
RECORDS
8 TRACK
CASSETTE
CD
MP3
? ?
2
Diffusion of Innovation
Firm B does not adopt innovation, eventually
loses most or all of its market
Firm A does not adopt innovation, eventually
loses most or all of its market
Innovation 1
Innovation 2
IRONWORKING
Economies of Scale (Fordism) Lower production
costs (per unit cost) as a result of larger
volume of production mass production
BLACKSMITHING
BESSEMER PROCESS
Innovation 3
MINI-MILL
Economies of Scope( Lower production costs
resulting from more efficient processes high
degree of specialization, niche marketing
FIRM C
FIRM A
FIRM B
Absolute Advantage (resource)
Comparative Advantage (gain by adoption of new
technology or process)
3
Economic Transitions

• Division of Labor The specialization of workers
  in particular tasks and different stages of the
  production process.
• ? The spatial division of labor is the
  specialization of different regions in different
  stages of the production process.

• Industrial Economy The dominant mode of
  production and consumption of the late nineteenth
  and early twentieth centuries, emphasizing large
  domestic corporations engaged in food processing,
  heavy equipment manufacturing, and energy
  products.

TER
SEC
QUA
PRI
Pre-conditions for Take-off
Drive to Maturity
High Mass Consumption
???
Traditional Society
Take-off
Industrial Revolution
Medical Revolution
Information Revolution
Hunter to Sedentary
Agricultural Revolution
Fordism