derivation
Definition: The use of affixes to create new words.
Note: This contrasts with inflection where affixes are used to form variants of words that are not neologisms (e.g., run becomes runs).
Example:
(1) the suffix -ness changes adjectives to nouns (e.g., quick becomes quickness).
(2) the suffix -ise changes adjectives into verbs (e.g., modern become modernise)
Etymology: The term derives from the Latin derivare, to draw off (a stream of water) from its source (from de rivo, from steam).
Oxford English Dictionary: Its first citation in this sense is from 1530:
"Derivatyon or formation, that is to saye, substantyves somtyme be fourmed of other substantyves."
(Palsgr. 68)



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