Abstract

This paper explores how digital platforms affect innovation diffusion among small U.S.-based manufacturers and focuses on collaborative online communities. Based on data from the U.S. Census Annual Business Survey (ABS, 2015–2022), supplemented by evidence from the Business Enterprise Research and Development (BERD) survey, Kauffman Firm Survey (KFS), and Crunchbase case-level evidence, the analysis sheds light on prominent trends in digital technology adoption and their connection to innovation outcomes. Descriptive findings reveal consistently increasing adoption rates for cloud computing, robotics, and data analytics and identify cloud computing as fastest-diffusing technology consistent with diffusion-of-innovation theory. Correlation analysis based on ABS microdata provides evidence for a statistically significant positive link (r = 0.42, p < .01) between cloud adoption and 2017 product innovation likelihood, indicating digital infrastructures with scale economies facilitate reducing information and coordination cost and stimulate experimentation and new-product formation. Case-level evidence based on digital manufacturing communities like ThomasNet, Maker's Row, and Xometry further exemplifies digital ecosystems supporting survey findings by allowing collaboration and knowledge spillovers as well as access to market areas. The research concludes with policy and practice implications by highlighting digital infrastructure investment and supporting collaborative platforms with targeted measures and measures to enhance equitable digital access as digital levers to accelerate innovation diffusion in U.S. manufacturers.