Factors affecting the take-off of innovative technologies: Evidence from digital cameras

While technological innovations are important for many industries, takeoff sales for innovative products can have long lead times due to a variety of factors. This article identifies the main parameters affecting digital camera take-off sales in the US between 2001 and 2004. The study constructs an empirical model for film and digital camera shipments and finds that digital cameras primarily served as a substitute for low-end film compacts rather than high-end film Single-Lens Reflex (SLR) cameras. Also, growth in household PC ownership and Windows XP market share were the main contributing factors to the decline of film cameras, with PC penetration rate as the most important factor for digital camera diffusion. © 2012 Taylor & Francis.