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. Return On Investment - ROI

    A performance measure used to evaluate the efficiency of an investment ...
  2. Game Changer

    1. A person who is a visionary. 2. A company that alters its ...
  3. Proprietary Technology

    A process, tool, system or similar item that is the property ...
  4. Price-To-Innovation-Adjusted Earnings

    A variation of the price-to-earnings ratio (P/E ratio) that takes ...
  5. Return On Innovation Investment

    A performance measure used to evaluate the effectiveness of a ...
  6. Mixed Economic System

    An economic system that features characteristics of both capitalism ...
Related Articles
  1. Investing

    R&D Spending And Profitability: What's The Link?

    Return on research capital (RORC), can help investors measure how much profit R&D spending actually generates.
  2. Markets

    Buying Into Corporate Research & Development (R&D)

    Investors take note: companies that cut research and development are in danger of saving today but losing big tomorrow.
  3. Active Trading

    Which Is Better: Dominance Or Innovation?

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

    The Ins and Outs Of In-Process R&D Expenses

    Are these charge-offs fair accounting or earnings manipulation? Learn more here.
  5. Economics

    Industries That Thrive On Recession

    Recessions are not equally hard on everyone. In fact, there are some industries that even flourish amid the adversity.
  6. Economics

    What is a Complement?

    A good or service that’s used in conjunction with another good or service is a complement.
  7. Economics

    Negative Interest Rate Policy (NIRP)

    A negative interest rate policy is an unconventional monetary policy tool in which nominal target interest rates are set below zero.
  8. Economics

    A History Of U.S. Monopolies

    Here are a few of the most notorious monopolies in U.S. history.
  9. Economics

    Understanding the American Dream

    The American dream is the belief that anyone, regardless of where they’re born or into what class, can attain their own version of success.
  10. Economics

    The World’s Top 10 Economies

    The world’s largest economy is the United States in terms of nominal GDP.
RELATED FAQS
  1. What's the difference between microeconomics and macroeconomics?

    Microeconomics is generally the study of individuals and business decisions, macroeconomics looks at higher up country and ... Read Full Answer >>
  2. Is North Korea a developed country?

    North Korea is one of the poorest and least developed countries in the world. It is far from a developed country. Because ... Read Full Answer >>
  3. Is Mexico a developed country?

    As of 2015, Mexico is not a developed country. However, it beats the majority of its peers in the developing world on most ... Read Full Answer >>
  4. Is China a developed country?

    Despite having the world's second-largest economy and third-largest military, China is still, as of 2015, not classified ... Read Full Answer >>
  5. Is Greece a developed country?

    Greece is a developed country by most meaningful metrics. However, its financial struggles have been well documented in the ... Read Full Answer >>
  6. Is the Philippines a developed country?

    The Philippines is not a developed country. The nation falls behind on every one of the most common metrics used by economist ... Read Full Answer >>
Hot Definitions
  1. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  2. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  3. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  4. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  5. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center