This book emanates from research into the problems of process innovation diffusion of new computer numerically controlled machine tools (CNC) in the Hungarian economy. At a purely methodological level, the book is based on the first systematic questionnaire-interview based study of innovation diffusion to be undertaken in Hungary. The resulting data has provided valuable insight into the problems of innovation in an economy that is currently making the transition from a socialist to a free market system. Beyond the academic importance of the methodological success of the research, the results also provide hard evidence on the problems of technological change in a rapidly changing system. At a more general level, this study of the problems of innovation in Hungary provides an insight into theory on innovation diffusion in both socialist and free market systems. For example, western concepts of innovation management must be radically modified in economies in which shortages inhibit the freedom to make decisions on the purchase of equipment. Such considerations go beyond the lack of control over investment decisions due to state control, but more subtly include problems caused by resource bottlenecks that, at best limit the quality of choice, and at worst prevent the successful acquisition of resources through their total absence. The development of concepts that suggest means by which these specific Eastern European problems can be overcome in the relatively advanced Hungarian case, will act as a "template" for similar action in other Eastern bloc countries with common infrastructural problems.
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