Innovation, markets and industrial change

Introduction

This unit looks at the role of innovation in the development of industries and considers how production costs change as sales increase and as new technology is introduced into the production process. It looks at the relation between consumer demand for a good and that good's price, and at how the relation between output and production costs in different markets can dramatically affect industry structure. In describing these issues, the unit introduces the range of activities that constitutes economics: formulating theories, modelling, debate and persuasion, analysis of data, understanding the behaviour of economic institutions such as companies and households, and analysing economic processes. It also seeks to show how all of these economic techniques can be used to build up a rich understanding of innovation and economic change.

This unit is an adapted extract from the course Economics and economic change (DD202) [Tip: hold Ctrl and click a link to open it in a new tab. (Hide tip)]