When a new technique has been adopted the speed at which other small businesses adopt may differ widely. This leads to what can be called the rate of diffusion. The rate of diffusion will be faster, the greater the improvement over existing technology and, the lower the cost of the technology in general. Using the definition of Bradley, et al technology diffusion can be defined as the spread of a new technique from one small firm to another. The two principal types of technology diffusion are "disembodied " diffusion and "embodies " diffusion introduction into production process of machinery,equipment and components incorporating new. Research spillovers are the means by which new knowledge or technology developed by one firm become