Scale versus scope in the diffusion of new technology: evidence from the farm tractor

Although tractors are now used in nearly every agricultural field operation and in the production of nearly all crops, they first developed with much more limited application. Early diffusion was accordingly rapid in these narrower applications but limited in scope until tractor technology generalized. The sequence of diffusion is consistent with a model of Research and Development (R&D) in specific‐ versus general‐purpose attributes and with other historical examples, suggesting that the key to understanding technology diffusion lies not only in explaining the number of different users, but also in explaining the number of different .

Duke Scholars

Author Daniel Gross Fuqua School of Business