Behavioral Innovation Economics

The chapter presents an overview of the emerging field of behavioral innovation economics, which is the application of behavioral economic theory and principles to the subject matter of innovation economics (also known as Schumpeterian or evolutionary economics). A behavioral innovation economics addresses such basic questions as why innovation is so hard to organize, and why public policy, while often advancing platitudes in its support, often constrains more than it supports. It focuses on why organizations, particularly large organizations, find it so hard to be innovative. It focuses on the question of the reasons why consumers adopt novelty, and the seemingly crucial importance of social context in those decisions