Relative Advantage optimum

Lesson 36 : Attributes of an Innovation and their Influence in Transfer of Technology

Relative Advantage optimum

The degree to which an innovation is perceived as better than the idea it replaces i.e. superior to the existing idea. The relative advantage may have number of dimensions. For example, if a new technology or practice gives more yield or income or saves time, labour and cost: or has less risk than the existing one; it has more relative advantage. Multiple use of an innovation may be a form of relative advantage. For example, an equipment or material which may be used for a number of activities has more advantage than an equipment or material which can be used for a single purpose. The advantage of location for specific enterprises in specific areas for instance growing sugar cane near the sugar factories will save time and money in transport or vice-versa. The innovations which have more relative advantage are likely to be adopted quickly. The degree of relative advantage is often expressed as economic profitability, social prestige, or other benefits. The nature of the innovation determines what specific type of relative advantage (such as economic, social and the like) is important to adopters.

  1. Economic factors
    A new product may be based on a technological advance or advances that result in a reduced cost of production for the product, leading to a lower selling price to consumers. When the price of new product decreases so dramatically during its diffusion process, a rapid rate of adoption is encouraged. Some examples are
    • Reduced prices for plasma and LCD TVs has encouraged people to by them.
    • The reduced prices of fruits and vegetables may encourage the people to use them more frequently in their diets.
    • Reduced prices for hybrid seeds/fertilizers/pesticides may make it more feasible for farmers.

  2. Social factors
    If a farmer can increase his social status in the society by adopting a particular innovation he will easily adopt.
    In the society people are always comparing themselves to others, persons belonging to lower classes will adopt a new idea i9f he/she feels that they will be accepted by those of the upper class.

  3. Geographic factors
    The geographic area where an individual lives will also affect the adoption/ rejection of an innovation. For instance
    • Particular seeds and fertilizers may be advantageous in irrigated rather than dry conditions
    • Water coolers and refrigerators have more advantages in hot areas
    • Particular storage bins have advantages on the type of climatic conditions and type of crops crow.
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Last modified: Saturday, 28 January 2012, 4:10 AM