Coordination Dynamics in Technology Adoption

Abstract

The adoption of new technologies by firms is a fundamental driver of technological change, enhancing competitiveness across various industries. Recent advancements in information technologies have amplified the strategic significance of technology in the competitive landscape, reshaping global markets and the workplace. Technological innovation continues at a swift pace, but its success hinges on effective adoption. Embracing new technologies sets businesses apart, fostering innovation, and attracting customers and investors. However, the decision to adopt technology poses challenges, especially regarding which technologies to choose in a dynamical market. Firms often invest in technology to gain a competitive edge, potentially neglecting broader social benefits in the process. This chapter summarises the authors' research on evolutionary dynamics of decision making regarding technology adoption. They employ methods from Evolutionary Game Theory (EGT), exploring scenarios with well-mixed populations and distributed networked environments.