Radio frequency identification (RFID) technology is one of the most promising auto-identification and data capture technologies. Applications are increasing rapidly and new ones combined with technologies such as sensors developing. Eight major applications are analysed, ranging from asset utilisation in supply chains to automatic display of information on products and services. It is difficult to quantify impacts, but there are rapidly growing markets for tags and systems. Country initiatives include: use by the public sector; information, awareness and education programmes; and incentives for business R&D and public project funding. There are potentially large gains in innovation and efficiency from more widespread applications. Due to technological and business uncertainties education and awareness activities could be further emphasised, particularly for small businesses and more advanced applications where potential impacts are high.