Intra-firm diffusion of new technologies: The neglected part of technology transfer

In this paper we explore the factors that affect the level of use of new technologies by firms post first adoption. Using newly collected data we show that there is little support for the predictions of the seminal model in the literature. An alternative empirical model is proposed and estimated which predicts that the factors that drive the intra firm diffusion process for a new technology are basically time since first adoption, firm size and the other technologies in use. Our results also hint that as newer technologies are introduced older technologies will be used less extensively.