Factors and Conditions of Innovation Diffusion in the B2C Markets

This research focuses on studying mechanisms of innovation diffusion process. Complexity of interactions of market elements on both micro and macro levels leads to partial understanding of this issue. Thus growth models and regression analysis were applied sequentially in order to identify factors and conditions which affect innovation diffusion in B2C markets. As a result the distinction between innovative and sales markets was found based on features of the demand dynamics during diffusion process. Also empirical evidences of relation between level of innovative demand and such factors as income size and degree of inequality of its distribution among population, R&D expenditures and migration rate had been found. Concerning imitation side of demand for innovation its size depends on population concentration, online advertising expenditures and prices for substitute goods of considering innovation.