Economics of Innovation

ECO80003 12.5 Credit Points Hawthorn


  • One Semester or equivalent

Contact hours

  • 36 hours face to face + blended

On-campus unit delivery combines face-to-face and digital learning.


Students must contact the Unit Convenor before enrolling, to determine eligibility.
Assumed Knowledge
Managerial Economics, Microeconomics, Econometrics or equivalent 

Aims and objectives

This unit aims to introduce students to economic perspectives on innovation including fundamental market failures and policy and organisational responses to these. In a world of finite physical inputs, innovation is the only sustainable source of growth in production and rising living standards. Themes and issues will be covered with reference to seminal literature and key surveys. Students will be introduced to a number of important datasets (using STATA), while developing a robust quantitative toolkit to become proficient at understanding and developing strategy and policy.
Unit Learning Outcomes (ULO)
On successful completion of this unit students will be able to:
1. Integrate the fundamental theories and principles of economics of knowledge, technology and innovation including (a) market failures and (b) innovation policies
2. Critically assess the established and frontier research of intellectual property and its connection to economic growth and firm performance.
3. Demonstrate expertise in use of micro-data in understanding innovation economics.
4. Critically evaluate seminal economic models using datasets and tools which inform management and policy.