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Innovation Diffusion: a (Big) Data-
driven approach to the study of the
geographic spreading of IT trends
Speaker: Enrico Palumbo, Data Scientist, Istituto Superiore Mario
Boella
1
Innovation Diffusion
Pioneering work of Everett Rogers in 1962
2
http://bryanmmathers.com/
Average Lifespan in S&P 500
Average lifespan in S&P 500 has shrunk from 61 years in 1958 to 18 years in 2012
3
S&P 500 turnover
Sample companies that have entered and exited since 2002
4
Gartner’s Hype Cycle 2016
5
Predicting evolution of IT trends is paramount
Research questions
1. Are IT trends synchronous
worldwide?
2. Is a good time for investing in the
USA necessarily a good time for
investing in Italy?
3. Is there a geographic diffusion
process of IT trends?
4. Is there a delay between IT trends?
6
A (Big) Data-driven approach
Datafication: digitalization is turning
everything into data
Google queries: enormous quantity of data
(Big Data) reflecting people’s interests
Google Trend: measure of Google queries in a
specific location and in a specific temporal
interval
7
Study the geographic diffusion of IT trends
through the analysis of Google Trend data
Google Trend Data
8
From Google queries to Google Trend
1. Queries with semantically related keywords are aggregated in topic i
2. Number of queries q(i,j,t) on topic i, in place j and at time t
3. Frequency of queries f(i,j,t) on topic i, in place j and at time t
4. Rescaled frequency of queries: max f(i,j,t) = 100
9
Data Analysis
10
1. Raw Data
2. Trend
2a. Representation 2b. Peaks 2d. Delays
Smoothing
FittingMaxPlot
Country Time of peak
Japan 15-12-2013
2c. Clusters
Clustering
Smoothing
Additive model: x(t) = m(t) + s(t) + e(t)
11
x(t)
m(t)
s(t)
e(t)
Trend
Raw data
Moving Average
Moving Average with annual resolution, to reduce random and seasonal effects
12
Data Analysis
13
1. Raw Data
2. Trend
2a. Representation 2b. Peaks 2d. Delays
Smoothing
FittingMaxPlot
Country Time of peak
Japan 15-12-2013
2c. Clusters
Clustering
Representation
Depiction of the Big Data trend from 2008 to 2015 for the eleven countries
14
Data Analysis
15
1. Raw Data
2. Trend
2a. Representation 2b. Peaks 2d. Delays
Smoothing
FittingMaxPlot
Country Time of peak
Japan 15-12-2013
2c. Clusters
Clustering
Peaks
Country Time of peak Delay w.r.t. JAP [weeks]
Japan 15-12-2013 0
United States 21-12-2014 53
India 04-01-2015 55
Canada 14-06-2015 78
Great Britain 21-06-2015 79
Brazil 21-06-2015 79
Germany 21-06-2015 79
France 21-06-2015 79
Italy 21-06-2015 79
China 21-06-2015 79 16
Data Analysis
17
1. Raw Data
2. Trend
2a. Representation 2b. Peaks 2d. Delays
Smoothing
FittingMaxPlot
Country Time of peak
Japan 15-12-2013
2c. Clusters
Clustering
Clustering: algorithms
● Grouping similar curves together, taking into account global behavior
● Time series = multi-dimensional vector (x(t0), x(t1) … x(tN))
● K-means: need to set number of clusters and initial centroids upfront
● Dbscan: need to set distance ε and min number of points upfront
Difficult to find a meaningful ε for time series
K-means with 3 clusters, initial centroids = (USA, Italy, China)
18
Clustering: results
Grouping similar curves together, K-means algorithm: 3 groups
19
Data Analysis
20
1. Raw Data
2. Trend
2a. Representation 2b. Peaks 2d. Delays
Smoothing
FittingMaxPlot
Country Time of peak
Japan 15-12-2013
2c. Clusters
Clustering
Delays: model
● Model: Verhulst equation, model of growth with saturation, popular in
innovation diffusion
EQUILIBRIASaturation
P -> K:
growth
rate tend
to 0
21
P-> 0: exponential
growth with rate r
Delays: logistic Function
● Solution: with P(x0) = K/2, we obtain the logistic function
Initial growth rate
Carrying
capacity
Mid-time
22
Delays: fitting
Method: non-linear least squares
Model: logistic function
Mid-time
23
Delays: formula
Delay: x0(Country 1) - x0(Country 2)
24
Delay with respect to Japan
Rank Country Delay w.r.t. JAP [weeks]
1 Japan 0
2 United States 30.4 ± 0.8
3 Great Britain 39.1 ± 0.9
4 Brazil 42.9 ± 1.2
5 India 50.1 ± 1.3
6 Germany 59.5 ± 0.9
7 Canada 64.9 ± 1.3
8 France 83.3 ± 0.9
9 Italy 116.3 ± 7.7
10 China 216.2 ± 5.9 25
Heatmap delay
CHI
JAP
CAN
FRA
ITA
DEU
IND
BRA
GBR
USA
CHIJAPUSA GBR BRA IND DEU ITA FRA CAN
200
150
100
50
0
-50
-100
-150
-200
26
Map of delay with respect to Japan
27
Other parameters
Country x0 K 1/r
Japan 188.9 土 0.8 48.0 土 0.3 22.8 土 0.7
United States 219.3 土 0.3 84.4 土 0.2 33.1 土 0.2
Great Britain 227.9 土 0.4 77.4 土 0.3 31.4 土 0.3
Brazil 231.7 土 0.9 42.8 土 0.4 22.0 土 0.8
India 239 土 1 84.1 土 0.7 36.5 土 0.7
Germany 248.3 土 0.5 77.7 土 0.4 33.5 土 0.4
Canada 254 土 1 80.4 土 0.7 41.7 土 0.6
France 272.1 土 0.4 70.5 土 0.3 38.0 土 0.3
Italy 305 土 8 84 土 4 66 土 3
China 405 土 6 221 土 20 44.3 土 0.7 28
Google search engine market share 2015
Country Google market share
Japan 57%
United States 72%
Great Britain 90%
Brazil 95%
India 96%
Germany 94%
Canada 87%
France 92%
Italy 95%
China 9%*
http://returnonnow.com/internet-marketing-resources/2015-search-engine-market-share-by-country/
*http://www.chinainternetwatch.com/17415/search-engine-2012-2018e/
29
Correlation?
CH
JA
US
UK
BR
IN
CA
FR
IT
GE
H0 = independence
Kendall tau = -0.135
P value = 0.653
No correlation!
30
Summary: interest in Big Data
1. Clustering: USA, CAN, GBR, IND, DEU
2. Peak: JAP, USA, IND, CAN
3. Mid-time: JAP, USA, GBR, BRA, IND
USA, India, Canada, Great Britain, Japan
31
Conclusions
1. Geography matters in studying the diffusion of
trends, delays can be up to 4 years (Japan -
China)
2. Big Data is still a growing trend in most
countries under analysis
3. English speaking countries and Japan appear
to be more responsive to the Big Data trend
32
Future work
1. Further validation extending the
study to other trends and other
countries
2. Use Google Trend Data to predict
economic indicators (e.g. market
share of the technology)
3. Model the diffusion process (e.g.
complex network model)
33
Thank you!
Enrico Palumbo, palumbo@ismb.it, www.ismb.it, @enricopalumbo91
Innovation Development area, Istituto Superiore Mario Boella (ISMB)
34

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Innovation Diffusion: a (Big) Data-driven approach to the study of the geographic spreading of IT trends

  • 1. Innovation Diffusion: a (Big) Data- driven approach to the study of the geographic spreading of IT trends Speaker: Enrico Palumbo, Data Scientist, Istituto Superiore Mario Boella 1
  • 2. Innovation Diffusion Pioneering work of Everett Rogers in 1962 2 http://bryanmmathers.com/
  • 3. Average Lifespan in S&P 500 Average lifespan in S&P 500 has shrunk from 61 years in 1958 to 18 years in 2012 3
  • 4. S&P 500 turnover Sample companies that have entered and exited since 2002 4
  • 5. Gartner’s Hype Cycle 2016 5 Predicting evolution of IT trends is paramount
  • 6. Research questions 1. Are IT trends synchronous worldwide? 2. Is a good time for investing in the USA necessarily a good time for investing in Italy? 3. Is there a geographic diffusion process of IT trends? 4. Is there a delay between IT trends? 6
  • 7. A (Big) Data-driven approach Datafication: digitalization is turning everything into data Google queries: enormous quantity of data (Big Data) reflecting people’s interests Google Trend: measure of Google queries in a specific location and in a specific temporal interval 7 Study the geographic diffusion of IT trends through the analysis of Google Trend data
  • 9. From Google queries to Google Trend 1. Queries with semantically related keywords are aggregated in topic i 2. Number of queries q(i,j,t) on topic i, in place j and at time t 3. Frequency of queries f(i,j,t) on topic i, in place j and at time t 4. Rescaled frequency of queries: max f(i,j,t) = 100 9
  • 10. Data Analysis 10 1. Raw Data 2. Trend 2a. Representation 2b. Peaks 2d. Delays Smoothing FittingMaxPlot Country Time of peak Japan 15-12-2013 2c. Clusters Clustering
  • 11. Smoothing Additive model: x(t) = m(t) + s(t) + e(t) 11 x(t) m(t) s(t) e(t) Trend Raw data
  • 12. Moving Average Moving Average with annual resolution, to reduce random and seasonal effects 12
  • 13. Data Analysis 13 1. Raw Data 2. Trend 2a. Representation 2b. Peaks 2d. Delays Smoothing FittingMaxPlot Country Time of peak Japan 15-12-2013 2c. Clusters Clustering
  • 14. Representation Depiction of the Big Data trend from 2008 to 2015 for the eleven countries 14
  • 15. Data Analysis 15 1. Raw Data 2. Trend 2a. Representation 2b. Peaks 2d. Delays Smoothing FittingMaxPlot Country Time of peak Japan 15-12-2013 2c. Clusters Clustering
  • 16. Peaks Country Time of peak Delay w.r.t. JAP [weeks] Japan 15-12-2013 0 United States 21-12-2014 53 India 04-01-2015 55 Canada 14-06-2015 78 Great Britain 21-06-2015 79 Brazil 21-06-2015 79 Germany 21-06-2015 79 France 21-06-2015 79 Italy 21-06-2015 79 China 21-06-2015 79 16
  • 17. Data Analysis 17 1. Raw Data 2. Trend 2a. Representation 2b. Peaks 2d. Delays Smoothing FittingMaxPlot Country Time of peak Japan 15-12-2013 2c. Clusters Clustering
  • 18. Clustering: algorithms ● Grouping similar curves together, taking into account global behavior ● Time series = multi-dimensional vector (x(t0), x(t1) … x(tN)) ● K-means: need to set number of clusters and initial centroids upfront ● Dbscan: need to set distance ε and min number of points upfront Difficult to find a meaningful ε for time series K-means with 3 clusters, initial centroids = (USA, Italy, China) 18
  • 19. Clustering: results Grouping similar curves together, K-means algorithm: 3 groups 19
  • 20. Data Analysis 20 1. Raw Data 2. Trend 2a. Representation 2b. Peaks 2d. Delays Smoothing FittingMaxPlot Country Time of peak Japan 15-12-2013 2c. Clusters Clustering
  • 21. Delays: model ● Model: Verhulst equation, model of growth with saturation, popular in innovation diffusion EQUILIBRIASaturation P -> K: growth rate tend to 0 21 P-> 0: exponential growth with rate r
  • 22. Delays: logistic Function ● Solution: with P(x0) = K/2, we obtain the logistic function Initial growth rate Carrying capacity Mid-time 22
  • 23. Delays: fitting Method: non-linear least squares Model: logistic function Mid-time 23
  • 24. Delays: formula Delay: x0(Country 1) - x0(Country 2) 24
  • 25. Delay with respect to Japan Rank Country Delay w.r.t. JAP [weeks] 1 Japan 0 2 United States 30.4 ± 0.8 3 Great Britain 39.1 ± 0.9 4 Brazil 42.9 ± 1.2 5 India 50.1 ± 1.3 6 Germany 59.5 ± 0.9 7 Canada 64.9 ± 1.3 8 France 83.3 ± 0.9 9 Italy 116.3 ± 7.7 10 China 216.2 ± 5.9 25
  • 26. Heatmap delay CHI JAP CAN FRA ITA DEU IND BRA GBR USA CHIJAPUSA GBR BRA IND DEU ITA FRA CAN 200 150 100 50 0 -50 -100 -150 -200 26
  • 27. Map of delay with respect to Japan 27
  • 28. Other parameters Country x0 K 1/r Japan 188.9 土 0.8 48.0 土 0.3 22.8 土 0.7 United States 219.3 土 0.3 84.4 土 0.2 33.1 土 0.2 Great Britain 227.9 土 0.4 77.4 土 0.3 31.4 土 0.3 Brazil 231.7 土 0.9 42.8 土 0.4 22.0 土 0.8 India 239 土 1 84.1 土 0.7 36.5 土 0.7 Germany 248.3 土 0.5 77.7 土 0.4 33.5 土 0.4 Canada 254 土 1 80.4 土 0.7 41.7 土 0.6 France 272.1 土 0.4 70.5 土 0.3 38.0 土 0.3 Italy 305 土 8 84 土 4 66 土 3 China 405 土 6 221 土 20 44.3 土 0.7 28
  • 29. Google search engine market share 2015 Country Google market share Japan 57% United States 72% Great Britain 90% Brazil 95% India 96% Germany 94% Canada 87% France 92% Italy 95% China 9%* http://returnonnow.com/internet-marketing-resources/2015-search-engine-market-share-by-country/ *http://www.chinainternetwatch.com/17415/search-engine-2012-2018e/ 29
  • 30. Correlation? CH JA US UK BR IN CA FR IT GE H0 = independence Kendall tau = -0.135 P value = 0.653 No correlation! 30
  • 31. Summary: interest in Big Data 1. Clustering: USA, CAN, GBR, IND, DEU 2. Peak: JAP, USA, IND, CAN 3. Mid-time: JAP, USA, GBR, BRA, IND USA, India, Canada, Great Britain, Japan 31
  • 32. Conclusions 1. Geography matters in studying the diffusion of trends, delays can be up to 4 years (Japan - China) 2. Big Data is still a growing trend in most countries under analysis 3. English speaking countries and Japan appear to be more responsive to the Big Data trend 32
  • 33. Future work 1. Further validation extending the study to other trends and other countries 2. Use Google Trend Data to predict economic indicators (e.g. market share of the technology) 3. Model the diffusion process (e.g. complex network model) 33
  • 34. Thank you! Enrico Palumbo, palumbo@ismb.it, www.ismb.it, @enricopalumbo91 Innovation Development area, Istituto Superiore Mario Boella (ISMB) 34