Bleeding Edge

AAA

DEFINITION of 'Bleeding Edge'

A product or service that is so new it has not been widely adopted by consumers and therefore carries a higher degree of uncertainty as to how it will fit in with existing goods and services.

Something described as bleeding edge would be considered more advanced than something considered "cutting edge". The higher degree in risk associated with the product or service means that the consumer might be "cut" by using such a new good if it fails to gain market acceptance. The term is often used to refer to new technology.

INVESTOPEDIA EXPLAINS 'Bleeding Edge'

For example, a new cell phone could be considered bleeding edge if it is the first of its kind. Consumers used to older cell phones will be uncertain as to how to use it, how it will be supported and what extra costs might be associated with using it.

Businesses that adopt bleeding edge technology that later becomes widely adopted may see an advantage from being a first-mover; however, if the bleeding edge technology is not widely-adopted the business will have spent significant resources on something that won't work. This presents businesses with a difficult choice: invest in bleeding edge technology that might ultimately fail, or don't invest and risk having obsolete technology if the bleeding edge technology becomes the industry standard.

RELATED TERMS
  1. Obsolescence Risk

    The risk that a process, product or technology used or produced ...
  2. Early Majority

    The first sizable segment of a population to adopt an innovative ...
  3. Visual Basic For Applications - ...

    A computer programming language developed by Microsoft which ...
  4. Dotcom

    A company that embraces the internet as the key component in ...
  5. White Elephant

    Any investment that nobody wants because it will most likely ...
  6. New Economy

    A buzzword describing new, high-growth industries that are on ...
RELATED FAQS
  1. How has investing in the Internet sector evolved over time?

    Investing in the Internet sector has become more conservative over time. It reflects a more measured approach that shies ... Read Full Answer >>
  2. How have technical skills shifted over the past century in the workforce?

    Several changes have transformed the skills required of the modern workforce. The influence of technological change has undoubtedly ... Read Full Answer >>
Related Articles
  1. Active Trading Fundamentals

    How The Power Of The Masses Drives The Market

    Market psychology is an undeniably powerful force. Find out what you can do about it.
  2. Entrepreneurship

    The 10 Greatest Entrepreneurs

    These 10 entrepreneurs' names will live on long into the future - perhaps even after their enterprises are gone.
  3. Economics

    5 Steps Of A Bubble

    Bubbles are deceptive and unpredictable, but by studying their history we can prepare to our best ability.
  4. Active Trading

    Sorting Out Cult Stocks

    Is that crazy product going to be the next big thing? Learn how to evaluate these companies here.
  5. Active Trading

    The Ups And Downs Of Biotechnology

    This volatile sector can provide huges gains, but there's also lots of downside.
  6. Fundamental Analysis

    The 6 Most Famous Failed Video Game Makers

    The video-game industry pulls in $100 billion in revenue annually. Failed companies offer a cautionary tale.
  7. Professionals

    Top 5 Coding Camps To Launch Your Career

    If you have been following the NASDAQ over the past few years then you know that the technology sector has been on fire. This is great news for anyone looking to land a job at a technology company. ...
  8. Economics

    How Creative Destruction Happens in Real Life

    In his seminal work, Capitalism, Socialism and Democracy (1942), Joseph Schumpeter proclaimed “the essential fact about capitalism” as being a process “that incessantly revolutionizes the economic ...
  9. Professionals

    Advisors Evenly Split on Robo-Advisors' Relevance

    A new study finds that advisors are split on the impact of robo-advisors.
  10. Chart Advisor

    How Investors are Profiting from Cyber Crime Fear

    An ETF that has seen significant gains this year in the growing field of cyber security, and the threat and fear of cyber attacks and cyber crime.

You May Also Like

Hot Definitions
  1. Inbound Cash Flow

    Any currency that a company or individual receives through conducting a transaction with another party. Inbound cash flow ...
  2. Social Security

    A United States federal program of social insurance and benefits developed in 1935. The Social Security program's benefits ...
  3. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  4. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  5. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  6. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!