Today «innovations» is a very modern word in the sphere of economics. Indeed, a lot of serious surveys show that more and more product or service innovations arrive on the market. According to a survey made by the WTO in 2003, for 100 new products or services developed in 2000, there were 123 in 2002, and 164 in 2003.
Innovation economics is the type of economics based on the stream of innovations, on the stable technological improvement and on the high technological products production.
Joseph Schumpeter is considered the patron saint of innovation economics. For him institutions, entrepreneurs, and technological change were at the heart of economic growth. He argued that creative destruction is crucial in capitalism. But it is only within the last 15 years that a theory and narrative of economic growth focused on innovation that was grounded in Schumpeter’s ideas has emerged. Leading theorists of innovation economics include both formal economists, as well as management theorists, technology policy experts, and others. These include Paul Romer, Elhanan Helpman, W. Brian Arthur, Robert Axtell, Eric Beinhocker, Richard R. Nelson, Richard Lipsey, Michael Porter, Christopher Freeman.
Until now, the world economy, and more especially markets and firms structures have known a lot of major trends, from a technology push model, going through a market pull model (1960-1970), then to an innovation coupling and to networks firms’ current «fashionable» structure (1990-2000).
As a result, it is important to be aware of current economic trends as far as production and diffusion of innovations are concerned for a better understanding of the phenomenon. Innovation process has to deal with the more and more global shape of the environment, the need for fast life cycle innovations, and the interdependence of research and business institutions.