K.U.Leuven - Departement toegepaste economische wetenschappen
DTEW Research Report 9502 pages:1-31
This paper presents a general model of global diffusion processes. The approach recognizes 'breadth' and 'depth' of adoption by first considering the sequential introduction of the innovation across countries (breadth). Given the time of introduction into a specific country, within-country diffusion (depth) is subsequently modelled. We illustrate the approach using data from the cellular telephone industry for 184countries. The proposed provides empirical insights which could not have been obtained using traditional techniques. In particular, we show that breadth and depth processes are not necessarily affected by the same socioeconomic factors. We also are able to evaluate the importance of the linkage between the two processes.