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Adoption of Technological Developments
It takes time for a newly innovated product to be widely adopted. The adoption depends on two factors viz. higher profit and flow of information or dissemination of benefits. The former posits that physicians adopt a new technique if it increases their profits. The latter emphasises the role of dissemination through various forums/ channels (e.g., journals, conferences, colleagues, friends etc.). Apart from considerations of profits by the medical professionals, there is also ‘information externalities’ inherent in adoption of a new technology. An externality is the uncompensated benefits for many persons by the actions of market behaviour.
The process works through multiplication of practices. For instance, by choosing the technology, the physician (or the first adopter) communicates to friends and colleagues that the new product will benefit both the patients and the doctors. The process multiplies itself until the maximum potential is reached. Empirically, the adoption of new technological developments, follow the logistic curve which isasymptotic at the base till it reaches the maximum limit.
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