One the diffusion of innovations in evolving social networks: a simulation study

Existing literature on technology diffusion increasingly agrees that social networks play a vital role in processes guiding the adoption of major innovations. Although it is generally accepted that knowledge about an innovation can be distributed unevenly within a network of potential adopters and that, therefore, the network acts as a powerful conduit of that knowledge, current research insufficiently explores the other side of that coin, namely that the diffusion process may also affect the network itself. Our study fits into this gap by examining what impact the spread of a new technology has on patterns of dyadic relationships between individuals and, in turn, how these effects interact with technology diffusion. To explore this dynamic interplay we constructed a computational model using agent-based simulation techniques. Two types of communities are considered: an explorative community whose members exchange information about the new technology in order to adopt it or to promote it further, and an exploitative community solely focused on learning about the technology that the agents already possess so as to increase its usability.