Complementary Approaches to the Diffusion of Innovation: Empirical Evidence on E-Services Adoption in Italy

Using data on the adoption of Information and Communication Technology (ICT) by 1947 Italian firms in 2004 and 2005, this paper provides evidence that is consistent with three largely complementary streams of literature on innovation diffusion. First, as suggested by epidemic models, the authors highlight the positive impact of early adopters’ performance on the rate of diffusion. Second, following probit models, they show how market structure and user characteristics, including their size and competencies, affect ICT adoption. Third and finally, the authors draw insights from systemic approaches to emphasise the dynamic role played by the public sector and by the technological and institutional context in which user firms are active.