Working Paper: NBER ID: w24125
Authors: Daniel P. Gross
Abstract: Using the farm tractor as a case study, I show that lags in technology diffusion arise along two distinct margins, which I term scale and scope. Though tractors are now used in nearly every agricultural field operation and in the production of nearly all crops, they first developed with much more limited application. Early diffusion was accordingly rapid in these narrower applications, but limited in scope until tractor technology generalized. The sequence of diffusion is consistent with a model of R&D in specific- versus general-purpose attributes and with other historical examples, suggesting that the key to understanding technology diffusion lies not only in explaining the number of different users, but also in explaining the number of different uses.
Keywords: technology diffusion; farm tractor; agriculture; R&D; productivity
JEL Codes: N52; O13; O32; O33; Q16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Type of crops grown (Q15) | Initial diffusion of tractors (N72) |
| Initial diffusion of tractors (N72) | Adoption of tractor technology (Q16) |
| Historical sequence of tractor diffusion (N52) | Understanding technology diffusion (O33) |
| General-purpose tractors availability (L64) | Tractor diffusion in corn counties (R19) |
| Technological advancements (O33) | Economic impact on agricultural practices (Q18) |
| Concentration of wheat and corn (N52) | Tractor diffusion (F16) |