ABSTRACT
Innovation has been widely recognized as one of the most important drivers to achieve competitiveness and growth at any level of analysis-either for the firm, for the industry, or for the nations. This chapter can be helpful for operations managers and anybody who wants to improve the operations and processes of their organizations through innovations. Innovation is a complex concept that needs a multiperspective approach. Economics of innovation is a central part to understand innovation and technological change, and its effect on firms, industries, competition, and our societies. Evolutionary theory radically departs from the neoclassical perspective. Knowledge pays a significant role in innovation activity; therefore, it is important to review the perspective of knowledge-based view (KBV) of the firm. KBV is compatible with evolutionary economics. This chapter offers a review of the theoretical foundations to help the operations manager to grasp innovation as a concept.
