Innovation Theory

An Innovation Theory is an economic theory that explains technological change mechanisms and innovation diffusion patterns.

• AKA: Theory of Innovation, Technological Change Theory, Innovation Economics Theory.
• Context:
  • It can typically analyze innovation drivers through institutional frameworks.
  • It can typically model technology adoption curves via diffusion equations.
  • It can often explain productivity growth through innovation accumulation.
  • It can often predict economic transformation via creative destruction processes.
  • It can range from being a Linear Innovation Theory to being a Complex Innovation Theory, depending on its causality model.
  • It can range from being a Supply-Push Innovation Theory to being a Demand-Pull Innovation Theory, depending on its innovation source.
  • It can range from being a Incremental Innovation Theory to being a Radical Innovation Theory, depending on its change magnitude.
  • It can range from being a Endogenous Innovation Theory to being a Exogenous Innovation Theory, depending on its growth model.
  • ...
• Examples:
  • Classical Innovation Theorys, such as:
    • Schumpeterian Innovation Theory for creative destruction.
    • Rogers Diffusion Theory for adoption pattern.
    • Christensen Disruptive Innovation Theory for market disruption.
  • Contemporary Innovation Theorys, such as:
    • Open Innovation Theory for collaborative development.
    • National Innovation System Theory for institutional approach.
    • Technological Stagnation Theory for deceleration analysis.
  • ...
• Counter-Examples:
  • Static Economic Theory, which assumes fixed technology.
  • Labor Theory of Value, which emphasizes labor input.
  • Monetary Theory, which focuses on money supply.
• See: Economic Theory, Technological Change, Technological Stagnation Theory, Artificial Intelligence Revolution, Disruptive Innovation, Economic Growth, Research and Development.

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