Innovation Economics: Challenges and Opportunities

This lecture introduces the course on Sustainability Transition and Technology Policy, focusing on the role of innovation in addressing grand challenges. The instructor discusses the significant changes brought by 20th-century innovations, which transformed daily life and improved quality of life across various dimensions. However, this progress is juxtaposed with disappointments, as innovation has also led to issues such as inequality, job displacement, and environmental degradation. The lecture emphasizes the need for a balanced approach to innovation, advocating for freedom and autonomy while also considering the necessity of directing innovation towards societal goals. The instructor highlights that innovation is not solely technological; it encompasses new business models and social practices. The course aims to explore the economics of business innovation, examining its successes and failures, and ultimately seeks to establish a framework for future innovation that aligns with sustainable development objectives. The discussion sets the stage for a deeper analysis of how to effectively manage and redirect innovation for societal benefit.