An evolutionary pattern of innovation diffusion. The case of flexible automation

Abstract

The aim of this paper is to provide evidence supporting an evolutionary model of the process of innovation diffusion. Relying on an extensive field study, the paper analyses the pattern of adoption of the entire set of innovations deriving from the flexible automation paradigm on the part of a large sample of Italian metalworking firms. Owing to the relevance of the technology examined and to the size of the sample, the case illustrates quite representatively the dynamics of the early stage of development of radical and complex innovations.The main results of the paper confirm the importance of firm size and market structure to explain the characteristics of the innovation/diffusion process. At the same time they emphasize that the localized search procedures on the part of potential users involve a step-by-step approach to adoption: namely, the technological and organizational profile of firms turns out to play a decisive role in favouring diffusion.Moreover, empirical support is provided for the existence of persistent market disequilibria along the diffusion paths, witnessed by the extent of the retrofitting phenomenon.