Economic modelling of innovation demands a great deal from economists since it requires them to analyse the new and unknown. This volume brings together contributions from a distinguished group of scholars who review a wide range of different theoretical and empirical economic approaches to this important topic.
Beginning with a survey of recent economic analysis on the role of innovation in driving growth, this volume features papers on the mainstream approaches to the welfare economics of innovation, the pitfalls and delays involved in bringing major inventions to market and the public subsidy of research. Later chapters examine pricing strategies for new products, models of productivity growth, knowledge spillovers across national boundaries and the effect of innovation on income distribution.
While recognising the many non-economic factors needed to explain innovation, Economic Approaches to Innovation demonstrates that economic analysis has much to offer in its modelling of key concepts such as uncertainty, private information, incentives and public goods.
Edited by the late Steve Dowrick, formerly Senior Fellow in the Research School of Social Sciences, Australian National University
Contents: Economic Approaches to Innovation: An Introduction 1. Innovation and Endogenous Growth: The New Theory and Evidence 2. Mainstream Analyses of Innovation: Neoclassical and New Industrial Economics 3. On the Uncertain Returns to Inventive Activity 4. Do Spillovers Undermine the Incentive to Innovate? 5. New Product Pricing: The Marketing of Innovations 6. Evolutionary Economics and Research and Development 7. Tariffs and Productivity when Technology is Embodied in Capital Equipment 8. International Knowledge Spillovers: A Cross-Country Study 9. Skill Biased Technological Change and the Structure of Employment Index