Induced Diffusion: Definition, Review and Suggestions for Further Research

There has been a good deal of work on how policy interventions can encourage the development of new/improved innovations (induced innovation). There are, however, only limited and disparate contributions on how, if at all, policy interventions can encourage the greater use of existing innovations (induced diffusion) using established diffusion theory. Most of these contributions are relatively recent and have been motivated by growing concerns for the natural environment. This paper seeks to develop the nascent concept of induced diffusion by (1) providing a generic definition for induced diffusion, (2) conducting an interdisciplinary review of studies that would fall within the definition of induced diffusion and (3) by making suggestions for future research that may help to develop the understanding of the concept. The paper concludes that the desire to tackle climate change should provide ample policy impetus to develop the concept of induced diffusion. This should not, however, obscure the potential for its wider application in areas such as healthcare and the need to develop it as a generic academic concept beyond the energy/environment nexus.