Revision: Innovation

Innovation has been defined by the OECD as “The transformation of an idea into a new, improved product, process or service.” This revision mind map looks at the micro and macroeconomic importance of innovation. Successful innovation can be a driving dynamic of a modern, competitive economy. A range of supply and demand-side policies can be used to foster innovative behaviour. Of key importance is the type of market structure in which innovation within the private sector can be encouraged. We must not forget too the potential for innovation in the public sector and in collaborative ventures between countries.

William Baumol has written that “innovative activity—which in other types of economy is fortuitous and optional—becomes mandatory, a life-and-death matter for the firm.”

Gordon Brown has said that “If the past century of economic policymaking has taught us anything, it is that achieving strong long term growth often has less to do with macroeconomic policies that with good microeconomics, including fostering competitive markets that reward innovation and restricting government to only a limited role.”

The mind map includes sections on

What is innovation?
Dynamic efficiency
Product innovation
Process innovation
Market Structures and the Incentive to Innovate
Government policy intervention and promoting innovation
Macroeconomic gains from innovation

Mindmap
Innovation.mmap

Pdf version of the mindmap
Innovation_in_Markets.pdf

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Unit 4 Macro: Focus on India - Comparative Advantage [27 Jan 2012]
Unit 4 Macro: Focus on India - World’s Cheapest Computer [26 Jan 2012]
Unit 4 Macro: Focus on India - Supply Side Issues [25 Jan 2012]
Unit 1 Micro: Can the UK Computer Games Industry Grow [24 Jan 2012]
Unit 4 Macro: Focus on India - Economic Growth [24 Jan 2012]
Unit 3 Micro: 3D Printing and a Manufacturing Revolution [23 Jan 2012]
Unit 1 Micro: Nano Technology and Energy Efficiency [17 Jan 2012]
Using Infographics in the classroom [15 Jan 2012]
Unit 4 Macro: Does Manufacturing Matter? [10 Jan 2012]
Unit 4 Macro: Natural Disasters and their Economic Impact [7 Jan 2012]
Unit 1 Micro: Biomass Subsidies and Timber Prices [30 Dec 2011]
Unit 2 Macro: The UK Housing Market in 2011 [26 Dec 2011]
Unit 3 Micro: Sub Normal Profits - BP Leaves the Solar Industry [21 Dec 2011]
Unit 3 Micro: Oligopoly and Duopoly in Bus Markets [20 Dec 2011]
Unit 4 Macro: India - the Road Ahead [7 Dec 2011]
Unit 1 Micro: Inside a Biscuit Factory [1 Dec 2011]
Unit 3 Micro: Hope Bikes - A Commitment to Excellence [30 Nov 2011]
Unit 4 Macro: Does UK Manufacturing have a Future? [30 Nov 2011]
Some Practice Interview Questions [27 Nov 2011]
Unit 3 Micro: Patent Wars might Stifle Innovation [23 Nov 2011]
AS Macro: The State of British Business [13 Nov 2011]
Unit1 Micro: Australia pass Carbon Tax [8 Nov 2011]
Unit 3 Micro: Unilever hit by rising costs [6 Nov 2011]
Unit 4 Macro: Richard Florida on the Great Reset [5 Nov 2011]
Unit 2 Macro: A New £50 comes into circulation [2 Nov 2011]
Unit 4 Macro: Should TNCs make full disclosure on factory wages? [30 Oct 2011]
Unit 1 Micro: Is the Sun Dipping on Solar Subsidies? [27 Oct 2011]
Unit 2 Macro: Economic Importance of Investment [19 Oct 2011]
Keynes Prize: The Economics of Cities (3) [14 Oct 2011]
Can the “invisible hand” solve Africa’s poverty? [13 Oct 2011]
Keynes Prize: The Economics of Cities (2) [13 Oct 2011]
Keynes Prize: The Economics of Cities (1) [12 Oct 2011]
Why Is Macroeconomics Such A Mess? [11 Oct 2011]
Unit 1 Micro: Waste Mountains as Above Ground Mining [6 Oct 2011]
Unit 1 Micro: Homework Assignment on Market Prices [2 Oct 2011]
Unit 3 Micro: Amazon launches the Kindle Fire [1 Oct 2011]
Unit 3 Micro: Science Cities and External Economies of Scale [29 Sep 2011]
Unit 1 Micro: The Supply and Demand Rap! [28 Sep 2011]
Unit 1 Micro: Exercise on Equilibrium Market Prices [27 Sep 2011]
Unit 1 Micro: Exercise on Market Supply [26 Sep 2011]
Unit 3 Micro: Fixed and Variable Costs [18 Sep 2011]
Mixing with the Nobel Economists [4 Sep 2011]
Unit 4 Macro: Baltic Dry Index and Global Weakening [19 Aug 2011]
Unit 1 Micro: Cotton Prices and the Retail Price of Clothing [13 Jul 2011]
Unit 3 Micro: Oligopsony - Dairy Losses Drive Farmers from the Fields [10 Jul 2011]
Where there’s muck there’s brass [6 Jul 2011]
China: The End of Cheap Labour [28 Jun 2011]
Two new RSA Videos - Matthew Taylor and Tim Harford [27 Jun 2011]
Evan Davis ‘Made in Britain’ - and a new trade data tool to play with [21 Jun 2011]
Six Global Trends Shaping Business Strategy [15 Jun 2011]
Macro Revision: Putting Things in Context [25 May 2011]
AS Macro Key Term: Supply-Side Policies [25 May 2011]
AS Macro Key Term: Demand Pull Inflation [24 May 2011]
AS Macro Key Term: Cost Push Inflation [24 May 2011]
AS Macro Key Term: Economic Recovery [23 May 2011]
AS Macro Key Term: Recession [23 May 2011]
AS Macro Key Term: Spare Capacity [23 May 2011]
AS Macro Key Term: The Output Gap [23 May 2011]
Revision notes on unemployment [22 May 2011]
A2 Micro: Competition Policy [20 May 2011]
A2 Micro: The Importance of Profit [19 May 2011]
A2 Micro: Market Structure, Conduct & Performance [19 May 2011]
A2 Micro: High and Low Marginal Cost Products [19 May 2011]
A2 Micro: Perfect Competition [19 May 2011]
A2 Micro: Competition and Efficiency [19 May 2011]
A2 Micro: Innovation and Economic Policies [18 May 2011]
A2 Micro: Innovation Efficiency and Welfare [18 May 2011]
A2 Micro: Moving Away from Profit Max [18 May 2011]
Unit 3 Micro: Diseconomies of Scale [18 May 2011]
A2 Micro: External Economies of Scale [18 May 2011]
The economics of price gouging after a natural disaster. [16 May 2011]
AS Micro: What´s really behind the oil price rise? [10 May 2011]
Review of “Adapt” by Tim Harford [9 May 2011]
Regulation, legislation and competitiveness - The Bribery Act [5 May 2011]
AS Micro: Commodity Prices [5 May 2011]
AS Macro: Extended House Price Deflation? [5 May 2011]
A2 Micro: Innovation in Markets [4 May 2011]
AS Micro: Rising Global Food Prices [2 May 2011]
Management lessons from the War in Iraq [30 Apr 2011]
AS and A2 Macro Revision: Keynesian Economics [28 Apr 2011]
AS Micro: Mock Exam Question on Sugar Prices [28 Apr 2011]
Economics Recommended Reading - Summer 2011 [26 Apr 2011]
AS Micro: Importance of Elasticity of Supply [23 Apr 2011]
Key AS Micro Terms: Taxes and Subsidies [18 Apr 2011]
Key AS Micro Terms: Competition and Monopoly [17 Apr 2011]
Key AS Micro Terms: Economic Efficiency [16 Apr 2011]
Key AS Micro Terms: Costs and Profits [16 Apr 2011]
Smartphones and Creative Destruction [16 Apr 2011]
Key AS Micro Terms: Prices [15 Apr 2011]
AS Micro: Prices for New and Second Hand Cars [9 Apr 2011]
AS Macro Key Term: Aggregate Supply Shock [6 Apr 2011]
Information Empires and Monopolies [2 Apr 2011]
AS Micro Revision: Banana Prices [1 Apr 2011]
Innovation: Google’s Driverless Car [31 Mar 2011]
OCR F585 June 2011: Competitiveness [31 Mar 2011]
Progress towards low carbon economic growth [18 Mar 2011]
AS Macro Revision: Investment Spending [12 Mar 2011]
Timetric: Research and Development in the UK [7 Mar 2011]
Patent Box or Innovation Box as Innovation Stimulant? [2 Mar 2011]

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