Research abstract: The diffusion of new industrial processes: An International study

A few economists such as Schmookler and Mansfield in the United States, and Carter and Williams in England have set the pioneering trend in studying the diffusion of industrial innovations. On the other hand, a quick look at the literature on the diffusion of nonindustrial innovations such as seeds and related agricultural items health-care products including family-planning techniques, educational innovations, etc., will easily overwhelm anyone by its rapidly growing volume. Nabseth and Ray have made a welcome contribution to the field of industrial innovation. Methodologically, the distinction between industrial and consumer (or nonindustrial) innovations is quite serious when one considers the difficulty in defining the adoption unit. Nabseth and Ray addressed themselves to this problem and discussed the complexity of data collection in industrial situations. The problem becomes further complicated when one searches for a meaningful denominator for constructing diffusion diagrams. As Nabseth and Ray said, there may be several reasons why the basis of comparison might be difficult. Firstly, a process may not be suitable to a firm due to a limitation of the output level or raw materials. With the passage of time, this limitation may change. Secondly, a complex industrial process such as numerically controlled machine tools may be used on products which cannot be described conveniently. Finally, many industrial process innovations are continuous in nature and improve over a long period of time. Consequently, it is difficult to decide the starting date of the introduction of an innovation. Nabseth and Ray have introduced a concept called technological ceiling to handle some of these difficulties. The technological ceiling for each industry has to be defined on the judgment of the industry in a particular country as to the number of potential adoptors.