Explain five factors that influence the adoption and diffusion of innovations (10 marks per factor).
Numerous variables have been identified as affecting the diffusion and adoption of innovations, but these can be grouped into:
• characteristics of the innovation itself, including:
• relative advantage,
• compatibility,
• complexity,
• observability
• trialability.
• Individual characteristics include age, education, social status and attitude to risk.
• Environmental and institutional characteristics include economic factors such as the market environment and sociological factors like communications networks.

However, whilst there is a general agreement regarding the relevant variables, there is very little consensus on the relative importance of the different variables,
and in some cases disagreements over the direction of relationships.