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Applying Diffusion of Innovations Theory

Decent Essays

Applying Diffusion of Innovations Theory

November 14, 2010
COM 126
K. Vook

Once innovation occurs, innovations may be spread from the innovator to other individuals and groups. In 1962, Everett Rogers proposed that the life cycle of innovations can be described using the “s-curve” or diffusion curve. The s-curve maps growth of revenue or productivity against time. In the early stage of a particular innovation, growth is relatively slow as the new product establishes itself. At some point consumer demand increases and product sales expand more rapidly. New incremental innovations or changes to the product allow growth to continue. Towards the end of its life cycle growth slows and may even begin to decline. In the later stages, no …show more content…

The elements selected for these evaluations vary widely from company to company and may include new product revenue, amount spent on research and development, time to market, customer and employee perception and satisfaction, number of patents, and additional sales resulting from past innovations (DeFleur, M. & Ball-Rokeach, S. (1989). On a political level, measures of innovation are used to compare one country or region with another. The OECD (Organisation for Economic Co-operation and Development) Oslo Manual of 1995 suggested standard guidelines for measuring technological product and process innovation. The new Oslo Manual of 2005, 3rd edition, added marketing and organizational innovation. The Bogota Manual was created in 2001 for Latin America and the Caribbean countries. A traditional indicator used to measure innovation is expenditure, for example, investment in R&D (Research and Development) as a percentage of GNP (Gross National Product). (DeFleur, M. & Ball-Rokeach, S. (1989) Economists Christopher Freeman(born 1921) and Bengt-Åke Lundvall developed the National Innovation System (NIS) to explain the flow of technology and information which is key to the innovative process on the national level. According to innovation system theory, innovation and technology development are results of a complex set of relationships among people, enterprises, universities and government research

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