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The Role of Product Innovation on the Diffusion of Mobile Telephone

Heli Koski and Tobias Kretchmer

No 1200, Discussion Papers from The Research Institute of the Finnish Economy

Abstract: Most existing empirical work on technology diffusion assumes technologies to remain constant throughout the diffusion process. However, many consumer technologies improve significantly over time. Using data on the characteristics of new mobile handsets over a ten-year period and controlling for potential endogeneity problems, we find that handset quality and variety had a significant impact on the global diffusion of mobile telephony. Our estimation results further suggest that earlier empirical studies on diffusion may have attributed too much of diffusion to network effects.

Keywords: product innovation; technology diffusion; mobile telephony (search for similar items in EconPapers)
JEL-codes: L96 O33 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2009
New Economics Papers: this item is included in nep-ino and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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