Technology Adoption, Quality and Health Care Costs: A Review of the Literature ABSTRACT: This paper provides a review of the literature that has investigated the mechanisms underlying the diffusion of new health care technologies and its implications. The importance of regulation and of the intensity of competitive pressures associated with each possible regulatory solution have been confirmed both theoretically and empirically. Nonetheless, the lack of consistency among the results of different studies, observed in some cases, may suggest that more work is needed. Moreover, the specific characteristics of different diseases and of the corresponding technologies may play an important role as well. Specific sections are included in the paper to review contributions that address two issues that have probably received less attention than they deserve: the welfare implications of the diffusion of new medical technologies and the timing of adoption.