Overcoming the barriers to the innovations diffusion through diffusion-oriented policies. The case of Li-Ion Battery for Electric Vehicles
DOI:
https://doi.org/10.7433/s94.2014.07Keywords:
diffusion of innovation, barriers to diffusion, diffusion policies, lithium batteries, electric carsAbstract
Purpose of the paper: The paper aims at developing a theoretical framework that links diffusion policies to the types of barriers to which theoretical models of diffusion of innovation implicitly or explicitly refer.
Methodology: The conceptual framework is based on an extended literature review. The model is applied to an empirical case: the technology policy applied to diffuse the Li-Ion battery for electric vehicles.
Findings: Literature has deeply analysed the policies for the development of innovations, but analysed the policies for innovations diffusion much less. To fill this gap, the study highlights that an effective approach to the diffusion of a new technology should be based on a careful analysis of the barriers to such diffusion and on a set of policies that simultaneously act on these barriers.
Research limits: Additional empirical studies are required to assess the applicability of the proposed conceptual framework.
Practical implications: The conceptual framework of this paper has implications for scholars and policy makers. For scholars the paper opens the path towards the deepening of a subject that is still little studied. For policy makers the research provides a conceptual tool to guide their choices in supporting the diffusion of relevant technologies.
Originality of the paper: The paper classifies the barriers to the diffusion of a new technology, providing a different perspective on theoretical studies on the diffusion of innovations. It proposes a theoretical framework that links policies supporting the dissemination of an innovation to the diffusion barriers for the first time. The potential explanatory power of the model is verified through a concrete case study.
References
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IRELAND N.J., STONEMAN P.L. (1985), “Order effects, perfect foresight and intertemporal price discrimination”, Recherches Économiques de Louvain/Louvain Economic Review, vol. 51, n. 1, pp. 7-20.
KARSHENAS M., STONEMAN P.L. (1993), “Rank, stock, order, and epidemic effects in the diffusion of new process technologies: An empirical model”, The RAND Journal of Economics, vol. 24, n. 4, pp. 503-528.
KATZ M.L., SHAPIRO C. (1986). “Technology adoption in the presence of network externalities”, The Journal of Political Economy, vol. 94, n. 4, pp. 822-841.
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MEADE N., ISLAM T. (2006), “Modelling and forecasting the diffusion of innovation-A 25-year review”, International Journal of Forecasting, vol. 22, n. 3, pp. 519-545.
MENANTEAU P., LEFEBVRE H. (2000), “Competing technologies and the diffusion of innovations: the emergence of energy-efficient lamps in the residential sector”, Research Policy, vol. 29, n. 3, pp. 375-389.
MEYER J.W., ROWAN B. (1977), “Institutionalized organizations: formal structure as myth and ceremony”, American Journal of Sociology, vol. 83, n. 2, pp. 340-63.
MOON M.J., BRETSCHNEIDER S. (1997), “Can state government actions affect innovation and its diffusion?: An extended communication model and empirical test”, Technological Forecasting and Social Change, vol. 54, n. 1, pp. 57-77.
MOWERY D. (1995), The practice of technology policy, in Stoneman P. (Ed.), Handbook of the Economics of Innovation and Technological Change, (Chapter 12), Wiley-Blackwell, New Jersey.
NISHINO H. (2010), Key Technology for EVs; Lithium-Ion Secondary Battery. Retrieved June 25, 2010, from http://mitsui.mgssi.com/issues/report/r1005j_nishino.pdf
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PERDIGUERO J., JIMÉNEZ J.L. (2012), “Policy options for the promotion of electric vehicles: a review”, working paper Institut de Recerca en Economia Aplicada Regional i Pública, pp. 2-43
REINGANUM J.F. (1981), “On the diffusion of new technology: A game theoretic approach”, The Review of Economic Studies, vol. 48, n. 3, pp. 395-405.
ROGERS E.M., SHOEMAKER F.F. (1971), Communication of Innovations; A Cross-Cultural Approach, Free Press, New York.
ROGERS E.M. (1995), Diffusion of innovations, Free Press, New York.
ROMER P.M. (1994), “The Origins of Endogenous Growth”, Journal of Economic Perspectives, vol. 9, n. 1, pp. 3-22.
STONEMAN P. (1976), Technological Diffusion and the Computer Revolution, Cambridge University Press, Cambridge.
STONEMAN P., DIEDEREN P. (1994), “Technology diffusion and public policy”, The Economic Journal, vol. 104, n. 425, pp. 918-930.
TEECE D., PISANO G. (1994). “The dynamic capabilities of firms: an introduction”, Industrial and corporate change, vol. 3, n.3, pp. 537-556.
TENG J.T., GROVER V., GUTTLER W. (2002), “Information technology innovations: general diffusion patterns and its relationships to innovation characteristics”, Engineering Management, IEEE Transactions, vol. 49, n. 1, pp. 13-27.
WARNER K.E. (1974), “The need for some innovative concepts of innovation: an examination of research on the diffusion of innovations”, Policy Sciences, vol. 5, n. 4, pp. 433-451.
ZHU K., KRAEMER K.L., GURBAXANI V., XU S.X. (2006), “Migration to open-standard interorganizational systems: Network effects, switching costs, and path dependency”, MIS Quarterly, vol. 30, pp. 515-539.
ARROW K.J. (1962), Economic welfare and the allocation of resources for invention, in GROVES H.M., The Rate and Direction of Inventive Activity: Economic and Social Factors, National Bureau of Economic Research, Princenton University Press, Princeton.
BAPTISTA R. (1999), “The diffusion of process innovations: A selective review. International”, Journal of the Economics of Business, vol. 6, n. 1, pp. 107-129.
BASS F. (1969), “A new product growth model for product diffusion”, Management Science, vol. 15, n. 5, pp. 215-227.
BEISE M. (2004), “Lead markets: country-specific drivers of the global diffusion of innovations”, Research Policy, vol. 33, n.6, pp. 997-1018.
BOCQUET R., BROSSARD O., SABATIER M. (2007), “Complementarities in organizational design and the diffusion of information technologies: An empirical analysis”, Research Policy, vol. 36, n. 3, pp. 367-386.
BROWN M.A., BERRY L., GOEL R. (1990), “Guidelines for Successfully Transferring Government-sponsored Innovations”, Research Policy, vol. 20, n. 2, pp. 121-143.
BUNDUCHI R., SMART A.U. (2010), “Process innovation costs in supply networks: a synthesis”, International Journal of Management Reviews, vol. 12, n. 4, pp. 365-383.
CAERTELING J.S., HALMAN J.I., DOREE A.G. (2008), “Technology commercialization in road infrastructure: how government affects the variation and appropriability of technology”, Journal of Product Innovation Management, vol. 25, n. 2, pp. 143-161.
CANIS B. (2013), Battery Manufacturing for Hybrid and Electric Vehicles: Policy Issues, Congressional Research Service Reports, UNT Libraries Government Documents Department.
CATTANI G. (2005), “Preadaptation, firm heterogeneity, and technological performance: a study on the evolution of fiber optics, 1970-1995”, Organization Science, vol. 16, n. 6, pp. 563-580.
CHIANG J.T. (1991), “From ‘mission-oriented’to ‘diffusion-oriented’ paradigm: the new trend of US industrial technology policy”, Technovation, vol. 11, n. 6, pp. 339-356.
CLARK G. (1984), Innovation diffusion: contemporary geographical approaches, Geo Books, Norwich.
DASGUPTA P., STONEMAN P. (2005). Economic policy and technological performance, Cambridge University Press, Cambridge.
DAVID P.A., GREENSTEIN S. (1990), “The Economics Of Compatibility Standards: An Introduction To Recent Research”, Economics of innovation and new technology, vol. 1, n. 1-2, pp 3-41.
DAVIES S. (1979), The diffusion of process innovations. Cambridge University Press, Cambridge.
DELRE S.A., JAGER W., BIJMOLT T.H., JANSSEN M.A. (2010), “Will it spread or not? The effects of social influences and network topology on innovation diffusion”, Journal of Product Innovation Management, vol. 27, n. 2, pp. 267-282.
DEROIAN F. (2002), “Formation of social networks and diffusion of innovations”, Research Policy, vol. 31, n. 5, pp. 835-846.
DEUTSCHE BANK (2009). Autos & auto parts Electric Cars: Plugged in 2. from http://www.db.com
DIMAGGIO P., POWELL WW. (1991). “The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields”, American Sociological Review, vol. 48, n. 2, pp. 147-160.
ERAT S., KAVADIAS S. (2006), “Introduction of new technologies to competing industrial customers”, Management Science, vol. 52, n. 11, pp. 1675-1688.
ERGAS H. (1987) Does technology policy matter?, in Guile B., Brooks H. (Eds.), Technology and Global Industry. National Academy Press, Washington DC.
ENRST C.S., ÖZEL F., DAVIES H., OLSCHEWSKI I., PIEPER M. (2012), “The Development of the E-Mobility Supply Chain in Europe - Results of the European Project ENEVATE”
ENVIRONMENTAL LEADER (2010). Global V2G Market to Reach $26.6 B by 2020. Retrieved August 17, 2010.
FUDENBERG D., TIROLE J. (1985) “Preemption and rent equalization in the adoption of new technology”, The Review of Economic Studies, vol. 52, n. 3, pp. 383-401.
GEROSKI P.A. (2000), “Models of technology diffusion”, Research policy, vol. 29, n. 4, pp. 603-625.
GOLDFARB B. (2005), “Diffusion of general-purpose technologies: understanding patterns in the electrification of US Manufacturing 1880-1930”, Industrial and Corporate Change, vol. 14, n. 5, pp. 745-773.
GRILICHES Z. (1957), “Hybrid corn: An exploration in the economics of technological change”, Econometrica, Journal of the Econometric Society, vol. 25, n. 4, pp. 501-522.
HALL B.H., KHAN B. (2003), “Adoption of new technology”, National Bureau of Economic Research Working Paper, Working Paper, n. 9730.
HAHN Y.H., YU P.I. (1999), “Towards a new technology policy: the integration of generation and diffusion”, Technovation, vol. 19, n. 3, pp. 177-186.
HELPMAN E., TRAJTENBERG M. (1996), “Diffusion of general purpose technologies”, Working Paper, n. 5773, National Bureau of Economic Research Cambridge, MA.
IRELAND N.J., STONEMAN P.L. (1985), “Order effects, perfect foresight and intertemporal price discrimination”, Recherches Économiques de Louvain/Louvain Economic Review, vol. 51, n. 1, pp. 7-20.
KARSHENAS M., STONEMAN P.L. (1993), “Rank, stock, order, and epidemic effects in the diffusion of new process technologies: An empirical model”, The RAND Journal of Economics, vol. 24, n. 4, pp. 503-528.
KATZ M.L., SHAPIRO C. (1986). “Technology adoption in the presence of network externalities”, The Journal of Political Economy, vol. 94, n. 4, pp. 822-841.
KELLY P.J. (1978), The Diffusion of Innovation in Science Education, Centre for Science Education, Chelsea College, London.
LOWE M., TOKUOKA S., TRIGG T., GEREFFI G. (2010), Lithium-ion Batteries for Electric Vehicles: THE U.S. VALUE CHAIN, Center on Globalization, Governance & Competitiveness Duke University, Durham, NC.
MANSFIELD E. (1961), “Technical change and the rate of imitation”, Econometrica: Journal of the Econometric Society, vol. 29, n. 4, pp. 741-766.
MEADE N., ISLAM T. (2006), “Modelling and forecasting the diffusion of innovation-A 25-year review”, International Journal of Forecasting, vol. 22, n. 3, pp. 519-545.
MENANTEAU P., LEFEBVRE H. (2000), “Competing technologies and the diffusion of innovations: the emergence of energy-efficient lamps in the residential sector”, Research Policy, vol. 29, n. 3, pp. 375-389.
MEYER J.W., ROWAN B. (1977), “Institutionalized organizations: formal structure as myth and ceremony”, American Journal of Sociology, vol. 83, n. 2, pp. 340-63.
MOON M.J., BRETSCHNEIDER S. (1997), “Can state government actions affect innovation and its diffusion?: An extended communication model and empirical test”, Technological Forecasting and Social Change, vol. 54, n. 1, pp. 57-77.
MOWERY D. (1995), The practice of technology policy, in Stoneman P. (Ed.), Handbook of the Economics of Innovation and Technological Change, (Chapter 12), Wiley-Blackwell, New Jersey.
NISHINO H. (2010), Key Technology for EVs; Lithium-Ion Secondary Battery. Retrieved June 25, 2010, from http://mitsui.mgssi.com/issues/report/r1005j_nishino.pdf
NUTLEY S., DAVIES H., WALTER I. (2002), “Conceptual Synthesis 1: Learning from the Diffusion of Innovations”, Working paper n. 10, ESRC UK Centre for Evidence Based Policy and Practice, Swindon.
PERDIGUERO J., JIMÉNEZ J.L. (2012), “Policy options for the promotion of electric vehicles: a review”, working paper Institut de Recerca en Economia Aplicada Regional i Pública, pp. 2-43
REINGANUM J.F. (1981), “On the diffusion of new technology: A game theoretic approach”, The Review of Economic Studies, vol. 48, n. 3, pp. 395-405.
ROGERS E.M., SHOEMAKER F.F. (1971), Communication of Innovations; A Cross-Cultural Approach, Free Press, New York.
ROGERS E.M. (1995), Diffusion of innovations, Free Press, New York.
ROMER P.M. (1994), “The Origins of Endogenous Growth”, Journal of Economic Perspectives, vol. 9, n. 1, pp. 3-22.
STONEMAN P. (1976), Technological Diffusion and the Computer Revolution, Cambridge University Press, Cambridge.
STONEMAN P., DIEDEREN P. (1994), “Technology diffusion and public policy”, The Economic Journal, vol. 104, n. 425, pp. 918-930.
TEECE D., PISANO G. (1994). “The dynamic capabilities of firms: an introduction”, Industrial and corporate change, vol. 3, n.3, pp. 537-556.
TENG J.T., GROVER V., GUTTLER W. (2002), “Information technology innovations: general diffusion patterns and its relationships to innovation characteristics”, Engineering Management, IEEE Transactions, vol. 49, n. 1, pp. 13-27.
WARNER K.E. (1974), “The need for some innovative concepts of innovation: an examination of research on the diffusion of innovations”, Policy Sciences, vol. 5, n. 4, pp. 433-451.
ZHU K., KRAEMER K.L., GURBAXANI V., XU S.X. (2006), “Migration to open-standard interorganizational systems: Network effects, switching costs, and path dependency”, MIS Quarterly, vol. 30, pp. 515-539.
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Published
2014-08-29
