The pace of technology diffusion in high-tech industries: The case of the mobile phone industry.

Abstract

Technological innovation is one of the factors that determine competitive advantage, especially when it comes to the high-tech sector. In this work, we want to investigate the drivers of technology diffusion in the high-tech sector. To do so, we conducted a literature review on the drivers of innovation and technology diffusion and evaluated these drivers in the mobile phone industry. To this end, we compiled a database of 1,200 mobile phone models introduced to the market in the years 1992-2010. Our research shows that Roger's attributes of innovation, industry life cycle, dominant design theory and innovation radicality are all valid drivers to explain some of the dynamics of technology diffusion. However, some contradictions emerge regarding the radicality driver. Moreover, some evidence cannot be explained by the drivers considered. Hence the idea of assessing the competitiveness of the sector as a further driver of the pace of technology diffusion.