The institutional environment for technology diffusion: the role of nonmarket institutions

The institutional aspects of technology diffusion are discussed. It is argued that the relevant institutional environment for technology diffusion cannot be limited to the user and supplier of technology. Owners of vertical complementary assets (i.e., industries and firms that produce complementary products and technologies) and nonmarket institutions form an integral part of the diffusion environment. Nonmarket institutions include professional societies, trade associations, governmental agencies, independent research and coordination agencies, and public service organizations. In suggesting the need for an integrated institutional perspective of technology diffusion, the authors outline the role played by each of the nonmarket institutions