Innovation and Adoption of Electronic Business Technologies

Kai Sülzle
Authors registered in the RePEc Author Service: Kai E. Suelzle

No 02/07, Dresden Discussion Paper Series in Economics from Technische Universität Dresden, Faculty of Business and Economics, Department of Economics

Abstract: This paper presents a duopoly model of e-business technology adoption. A leader and a follower benefit from a new ebusiness technology with uncertain quality depending on its innovation and adoption cost and both firms' adoption timing. When innovation and adoption require large set-up costs, the leader favors quick adoption by the follower. The follower prefers either late or no adoption. This is due to a delayed firstmover benefit which stems from an innovators' capability to impose a new technology standard. It is shown that inter-firm adoption subsidies are a viable tool to quicken adoption.

Keywords: Electronic Business; Adoption; Innovation; Network Effects (search for similar items in EconPapers)
JEL-codes: L1 O31 (search for similar items in EconPapers)
Date: 2007
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https://www.econstor.eu/bitstream/10419/22743/1/DDPE200702.pdf (application/pdf)

Related works:
Working Paper: Innovation and Adoption of Electronic Business Technologies (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:tuddps:0207

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