This major textbook provides a comprehensive yet accessible introduction to the economics of innovation, written for students with some basic knowledge of economics. G.M. Peter Swann contends that innovation is one of the most important economic and business phenomena of our time and a topic of great practical and policy interest, with widespread implications for our economy and society. This book engages with the reader to explore some of the key economic issues concerning innovation.

Bridging a gap in the literature, this timely textbook addresses critical questions such as: How should different aspects of innovation be described and classified? What are the incentives to innovate? How should firms organize themselves to promote innovation? What are the effects of innovation on the economy? Do governments have a role in supporting and guiding innovation?

Introducing the student to a broad range of issues surrounding the economics of innovation, this text will prove invaluable to students on a variety of courses including economics, business and management, innovation, and science and technology studies.

Contents: Preface Part I: Context 1. What is the Economics of Innovation About? 2. Innovation in the History of Economic Thought Part II: Aspects of Innovation 3. Basic Concepts in Innovation 4. Process Innovation 5. Product Innovation 6. Innovative Pricing 7. Network Effects and Standards 8. Intellectual Property Part III: How Firms Achieve Innovation 9. Innovation and Creativity 10. The Entrepreneur and Innovation 11. Organisation for Innovation 12. Vision and Innovation 13. Clusters and Networks 14. Division of Labour Part IV: Innovation and the Consumer 15. The Passive Consumer and the Active Consumer 16. The Diffusion of Innovations Part V: The Effects of Innovation 17. Innovation and Trade 18. Innovation and Market Structure 19. Innovation and Wealth Creation 20. Innovation and Competitiveness 21. Innovation and Sustainability Part VI: Innovation and Government 22. Innovation and Policy References Index

Contents Preface Part I: Context 1. What is the Economics of Innovation About? 2. Innovation in the History of Economic Thought Part II: Aspects of Innovation 3. Basic Concepts in Innovation 4. Process Innovation 5. Product Innovation 6. Innovative Pricing 7. Network Effects and Standards 8. Intellectual Property Part III: How Firms Achieve Innovation 9. Innovation and Creativity 10. The Entrepreneur and Innovation 11. Organisation for Innovation 12. Vision and Innovation 13. Clusters and Networks 14. Division of Labour Part IV: Innovation and the Consumer 15. The Passive Consumer and the Active Consumer 16. The Diffusion of Innovations Part V: The Effects of Innovation 17. Innovation and Trade 18. Innovation and Market Structure 19. Innovation and Wealth Creation 20. Innovation and Competitiveness 21. Innovation and Sustainability Part VI: Innovation and Government 22. Innovation and Policy References Index