In a dynamic game-theoretical model, this paper investigates the open-loop equilibrium timing of international and domestic technology adoption and diffusion. By extending the model of innovation rivalry by Katz and Shapiro (1987) to one of dissemination of a new technology in the presence of heterogeneous sectors, this paper sheds light on the sequential decision processes in international and domestic markets. This paper demonstrates the interdependence of timing decisions, including a waiting equilibrium in the two markets, and evaluates the welfare effect of a new technology. Results in our model suggest policy recommendations at a micro- and macro-level of the economy.