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Technological Learning and Adoption


Costs of Fossil Fuel Generating Plant

East Harbour Management Services Ltd
[ Last Updated 14 November 2005 ]


Invention, innovation and diffusion are the three phases successful new technologies pass through. Diffusion is the gradual process of adoption of a process or product by potential users. This induces "learning by doing" for manufacturers and "learning by using" by consumers. "Learning by doing" on an international basis results in cost reductions due to manufacturing efficiencies and experience. This is reflected in the "learning factors" applied to each technology. Diffusion of new economically superior technologies typically follow an S shaped curve, slow at the start, becoming faster, and slower as saturation is approached.


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