Explaining the diffusion of innovation types across low and high innovative localities: a test of the Berry and Berry model

Abstract

Berry and Berry (1999, 2007) argue that diffusion of policy innovations is driven by learning, competition, user demands or vertical influence from higher levels of authority. In this article we examine this framework on management innovation, examining both total innovation and different types of management innovation (service, organizational, marketization, technology and ancillary). Analysis is undertaken on a panel of 676 English local governments over four years using random effects models. Given the variations in the degree to which innovations are adopted, we divide the sample into high and low adopters for different innovation types. Our findings reveal that a majority of the diffusion drivers are positively significant, providing strong support for the Berry and Berry model (1999, 2007) at the total innovation level of analysis and amongst the high innovation adopters in this sample. However, when we examine our data by innovation type the explanatory capacity of the Berry and Berry framework diminishes. Conclusions point towards the need for better theory to explain the diffusion on innovation types.