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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.