http://people.ischool.berkeley.edu/~hal/people/hal/NYTimes/2006-02-09.html

The diffusion of innovation in a social network has many facets that need to be taken into account.  Introduction of such new technology doesn’t always work. Its “relative advantage” compared to practices already in place by a society is a good indicator of how well an innovation will take hold. Also, how complex or observable a new technology is, as well as its compatibility with the system it is being introduced into are important indicators.

In any case, these new innovations come from the global system, and their introduction is distinctly different than information cascades and other such local network phenomena that we have been studying. However, cascades come into play when we try to model diffusion in networks. Using a networked coordination game, each node is “optimally updating its decision based on the immediate consideration of what its neighbors are currently doing.” The model becomes more technical, but moving towards the article we see that there are very real examples of social network diffusion of innovation.

Quanta Computer announced that it would be making a $100 laptop for use in developing countries and societies in which such network access is foreign.  Microsoft’s vice president Craig J. Mundie suggested that cell phone devices might be more practical. In other words, its “compatibility” with the social system might not be sufficient, and it would fail to take hold. However, Quanta argues that its use would be a “relative advantage” to many other practices in these developing socieites. It could be used as a way to transfer funds like an A.T.M.. It could also be used as a way to store legal documents more efficiently. Another concern is raised with its complexity, as “written communication requires a literate population.” But if diffusion begins to take hold in a developing society, these skills could be learned more easily.