brain/
concepttechnology-adoption-s-curves

Curve Steepness and Adoption Velocity

Notes

Curve Steepness and Adoption Velocity

One-line summary: "Some S-curves are steeper than others" — the steepness parameter k (how fast a technology crosses from niche to mainstream) is set by feedback mechanisms (learning curves, economies of scale, network effects, lock-in), and modern curves are getting steeper.

The insight

Steepness is not incidental — it is the variable that decides how violent and how brief a re-rate is, and it is governed by identifiable feedback. RMI names four mechanisms that bend adoption into a steep S rather than a line: learning curves, economies of scale, technological reinforcement, and social diffusion. Where adoption raises the value or lowers the cost of further adoption (increasing returns / network effects, à la Arthur), you get positive feedback, tipping, and lock-in — but "there is no lock-in without further stabilizing returns," i.e. the steep self-reinforcing phase requires the returns mechanism to persist. In Bass terms, steepness is dominated by the imitation coefficient q (network/word-of-mouth) relative to the innovation coefficient p (see bass-diffusion-model).

A striking empirical regularity: time-to-50%-penetration has compressed across eras — telegraph 56 years, radio 22, PCs 16, internet 7, smartphones 5, AI tools ~3 (projected). Newer technologies ride steeper curves (higher k), so the window to take a position is shorter.

Evidence

Design implications

  • The presence and durability of feedback mechanisms (learning rate, scale, network effects) is the leading indicator of a steep curve and of a defensible eventual share — exactly what an investor wants to gauge before a re-rate.
  • Steepness compounds urgency: RMI — "the fastest movers will stand to capture the biggest rewards, and the slowest movers will be left with the biggest losses."

Contradictions / tensions

Open questions

Related

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