New Product Adoption Dynamics models how an innovation spreads through a population via two main drivers:

• Innovator probability, which determines how many people adopt the product independently and autonomously.

• Imitator conversion rate, which measures how many new adopters join due to social contact and word of mouth (WOM).

This approach helps us understand how the total flow of new adopters evolves over time.

📈 Applied example: In the adoption of renewable energy, early users (innovators) install solar panels out of conviction or future-oriented vision. Later, their visible results and testimonials create an imitation effect among neighbors, accelerating broader adoption. This model helps predict how much diffusion can be achieved through different promotional strategies or public policies.