ABSTRACT
This chapter examines the extent of the diffusion of FA and identifies the main reasons for the use of FA and associated organizational techniques, particularly in the case of selected developing countries. Diffusion refers to the aggregate results of activities through which new products and processes spread across potential markets. It involves choices, simultaneous interactions and outcomes between suppliers and users which, in turn, are influenced by technological, economic, institutional and individual considerations (Hall 1994; Karshenas and Stoneman 1995; Mansell and Steinmueller 1996; Stoneman 1995). Diffusion processes may take place locally or internationally, within one firm or industry, in the case of specific technologies or across industries, when generic technologies are involved. By bringing new products and processes to users, the diffusion process provides users with embodied and disembodied knowledge and skills previously unavailable to them.
