Diffusion and Competition of Innovative Cardiological Technologies

Abstract

The paper aims to investigate the diffusion process of two competing innovative technologies in the health care sector. Novelties in cardiovascular surgery will serve as an example. Using a rather simple modeling approach for the decisions of adopters and suppliers we simulate the evolution of a new market and discuss the effects network externalities and individual learning unfold in different scenarios. Increasing returns to adoption may lead to situations of technological "lock in".

Keywords: technological change, diffusion processes, competing technologies, adoption decisions, social learning, medical equipment,network externalities

JEL Classification: O33, I11, D43