It is now clear that different technological domains have significantly different rates of performance improvement. Theoretically, such differing rates should influence the relative rate of diffusion of the products since improvement in performance during the diffusion process increases the desirability of the product diffusing. However, there has not been a broad empirical attempt to examine this effect and to explain the underlying cause. Therefore, this paper reviews the theoretical basis and focuses upon empirical tests of this effect and its underlying cause . The results for 18 different diffusing products show the expected relationship-faster diffusion for  more rapidly improving products- between technological improvement and diffusion with strong statistical significance. The empirical examination also demonstrates that performance improvement does not slow down in the latter parts of diffusion when penetration does slow down. This finding is also consistent with theories of diffusion based upon utility but not with ideas that explain  performance increases as due to competition among firms.
It is now clear that different technological domains have significantly different rates of performance improvement. Prior theory indicates that such differing rates should influence the relative speed of diffusion of the products since improvement in performance during the diffusion process increases the desirability of the product diffusing. However, there has not been a broad empirical attempt to examine this effect and to clarify the underlying cause. Therefore, this paper reviews the theoretical basis and focuses upon empirical tests of this effect across multiple products and their underlying technologies . The results for 18 different diffusing products show the expected relationship-faster diffusion for products based on more rapidly improving technological domains- between technological improvement and diffusion with strong statistical significance. The empirical examination also demonstrates that technological improvement does not slow down in the latter parts of diffusion when penetration does slow down. This finding is not consistent with ideas that explain technological performance increases as due to competition among firms.
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Theoretically,
Prior theory indicates that
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rate
speed
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explain
clarify
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and its underlying cause
across multiple products and their underlying technologies
A
products based on
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products-
technological domains-
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performance
technological
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also consistent with theories of diffusion based upon utility but not with
not consistent with
A
technological