Diffusion of technology requires a certain critical mass of users to be establish, to ensure the sustainability of the process. How would you assess its magnitude?
I wonder if you might consider measures of Transfer Entropy and of Mutual Information, as per the note drawn from my paper to UKAIS last April:
Mutual Information (MI) is considered as ‘a measure of the amount of information one random variable contains about another’ (Cover & Thomas, 1991). MI does not have a time base and so cannot measure flows. Transfer Entropy (TE) is ‘a model-free measure of information flows between different time series’ which,
‘under weak assumptions, allows [for the quantifying of] information transfer without being restricted to linear dynamics’ (Dimpfl & Franziska, 2012; Kullback & Leibler, 1951). Unlike MI, Transfer Entropy is ‘based on rates of entropy change’ (Schreiber, 2000) and so ‘captures some of the dynamics of a system’ (Tenkanen, 2008). TE may therefore be seen also as a measure of the stability or instability of the system and so, potentially, of chaotic behaviour and cascades, in which ‘a failure of a very small fraction of nodes in one network may lead to the complete fragmentation of a system of several interdependent networks’ (Buldyrev et al, 2010).
Other work I / we have done examines Instability and Uncertainty and we can obtain measurements about the degree of uncertainty in a system or process. Uncertainty can lead to instability and vice versa. Where we see a rapid decrease in uncertainty, I might suggest is a moment when such a diffusion or understanding takes place. Equally, when we see a rapid increase in uncertainty then that may be a precursor to chaos and instability and / or the making of a step change - when the old rules and stabilities go out of the window?
Ewa, great question - let me know what you think. But, I think measurements of uncertainty in the system may be a key indicator of critical mass and technology diffusion.
Dear Simon, Thanks for your feedback. My research work mainly concentrates on ICT diffusion. Bearing in mind the dynamics of the process I was trying to 'find' the minimal amount/number of users which make the process of diffusion self-sustaining (following the logitics growth models). Recently I have worked on the authored book (now submitted to Springer, and accepted for publication) where I present a novel approach to measuring the 'critical mass' regarding the ICT diffusion dynamics. I attach the file where I present the general logic of the methodology. It was elaborated basing on detailed calculation of country-specific ICT diffusion processes. However, I am still working on its futher improvments. Thanks for your guidlines - maybe I will try adopt this approach.
Critical mass would be defined as the threshold after which increasing returns take over. But critical mass itself is subjected to path dependence. Links on a paper that would perhaps be helpful? And Philip Ball's book on critical mass may provide leads to luminaries in the field.
Actually I think that the critical mass generally differs according to the type of innovation. Considering a network-based innovation would probably lead to a totally different result than a pure product innovation. Therefore I tackle this question mainly with simulation models.