Journal of Economic Growth

, Volume 9, Issue 4, pp 451–479 | Cite as

Diffusion and Innovation of New Technologies under Skill Heterogeneity

  • Toshihiko Mukoyama


This article presents a model of innovation and diffusion of machines which embody a new technology. Users of the machines are heterogenous in their skill level. Skilled machine-users adopt new machines first, while unskilled users wait until machines become more user-friendly and reliable. The improvement of machines is the engine of diffusion, and it is carried out by the monopolist machine producer. The speed of diffusion is affected by the skill distribution in the economy. At any point in time, the machine producer can innovate a new generation of machines. The timing of innovation is also influenced by the skill distribution.

diffusion innovation skill user-friendliness R&D 


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Copyright information

© Kluwer Academic Publishers 2004

Authors and Affiliations

  • Toshihiko Mukoyama
    • 1
  1. 1.Department of Economics, Concordia University and CIREQMontrealQCCanada ()

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