This chapter explores the patterns of adoption and use of original and new-to-market product innovations. Three levels of diffusion are identified: (i) the spreading of first use across countries (the extensive margin); (ii) the spreading of first use across users within countries (the intensive margin); and (iii) increasing intensity of use by adopters (firms or households). The principal finding is that diffusion often takes a considerable period of time, both across and within countries. Movement on the intensive margin continues for many years after diffusion on the extensive margin is completed. Intra-firm or household diffusion is also time-intensive, differs by industry sector, country, and technology, and continues even after inter-firm or household diffusion is complete. In addition, the diffusion of the production of product innovations may eventually mean that countries that were early producers are eventually replaced by countries that were late producers.
Can South Africa sustain and diversify its exports?
