The impacts of national characteristics on adoption and substitution of innovation

Abstract

It is an important problem for firms to understand how to diffuse their innovation successfully in various countries' markets. This study conducts cross national analysis of adoption and substitution of innovation. We pick up narrowband internet and broadband internet subscription across 58 countries as target innovations. First, we analyze adoption and substitution of innovation between successive generations across countries by developing a new diffusion model with technological substitution. Second, we elucidate the impacts of national characteristics on adoption and substitution of innovation. The impacts of national characteristics on adoption and substitution of innovation are clarified. This study provides important suggestions for firms to diffuse their innovation effectively in various countries' markets.