Rate Of Adoption

DEFINITION of 'Rate Of Adoption'

The number of members of a society who start using a new technology or innovation during a specific period of time. The rate of adoption is a relative measure, meaning that the rate of one group is compared to the adoption of another, often of the entire society.


Attributes of an innovation that affect the rate of adoption include the advantage created by adopting the innovation, the ease at which the innovation can be adopted into daily life, the ability of other members of society to see those who have already adopted the innovation and the expense associated with trying the innovation.

BREAKING DOWN 'Rate Of Adoption'

The adoption rate is part of the diffusion of innovations theory, which seeks to explain how the use of new technologies, processes and innovations spreads through a society, and why they are adopted over old methods.


One major factor that influences the rate of adoption is the type of society that is being introduced to an innovation, as closed societies and societies without clear communication between adopters and non-adopters are less likely to take on a new technology.

RELATED TERMS
  1. Diffusion Of Innovations Theory

    A hypothesis outlining how new technological and other advancements ...
  2. Early Majority

    The first sizable segment of a population to adopt an innovative ...
  3. Late Majority

    The last sizable segment of a population to adopt an innovative ...
  4. Adopter Categories

    Classification of individuals based on their willingness to try ...
  5. Early Adopter

    An individual or business who uses a new product or technology ...
  6. Qualified Adoption Expenses - QAE

    The necessary costs paid to adopt a child younger than 18 years ...
Related Articles
  1. Active Trading

    Adopt a long-term perspective

    These guiding principles will help you avoid common folly during the decision-making process.
  2. Active Trading

    Which Is Better: Dominance Or Innovation?

    Find out how to assess and evaluate both these values in the market and your portfolio.
  3. Entrepreneurship

    The Most Innovative Entrepreneurs Of 2015

    Investopedia provides a list of the most innovative entrepreneurs with the potential to make it big in 2015.
  4. Investing

    5 Amazing Scientific Innovations That Affect Our Lives

    The list of scientific innovations is vast and includes advancements that affect us in areas such as communication, food, health and safety, technology, and transportation.
  5. Investing

    The Topic We Should All Be Paying Attention to

    As the December Federal Reserve (Fed) meeting nears, discussions and speculation about the precise timing of Fed liftoff are certain to take center stage.
  6. Taxes

    Tax Deductions Vs. Tax Credits

    Understanding the difference between tax deductions and credits is crucial, as the tax strategies that you adopt now can favor one over the other and yield substantially different tax savings.
  7. Financial Advisors

    How Top Advisors Innovate to Stay Ahead

    Successful advisors are innovative, reaching out to a new generation of clients by embracing new technology.
  8. Investing

    5 Amazing Scientific Innovations

    The list of scientific innovations is vast and includes advancements that affect us in areas such as communication, food, health and safety, technology, and transportation.
  9. Investing Basics

    The Most Successful Corporations In The U.S.

    These five iconic American brands epitomize corporate success.
  10. Investing

    How Do Futures Contracts Work?

    Futures contracts are one of the most important financial innovations in history, but they are often misunderstood. Find out this contract is used to transfer risk between different parties. ...
RELATED FAQS
  1. In what types of societies does limited government work best?

    See what a society needs to function with a limited government, and how social cooperation can be achieved through voluntary ... Read Answer >>
  2. What is the Mont Pelerin Society?

    The Mont Pelerin Society was formed in 1947 when economist Friedrich von Hayek invited 39 people to meet at Mont Pelerin ... Read Answer >>
  3. What is the relationship between research and development and innovation?

    Understand what research and development is and why a company or person would want to conduct it. Learn about how it can ... Read Answer >>
  4. Why doesn't England use the euro?

    Understand why the United Kingdom has opted to not join the eurozone in adopting the euro over the pound sterling as its ... Read Answer >>
  5. Why do most economists favor capitalism?

    Learn more about how capitalism works and why it is a popular system among economists throughout the world. Read Answer >>
  6. Why should companies invest in research and development?

    Understand why companies should invest in research and development. Learn the specific ways R&D can keep a company relevant. Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center