Hall, B. H., & Rosenberg, N. (2010). Introduction to the Handbook. In Handbook of the Economics of Innovation (Vol. 1, pp. 1-9). Elsevier. DOI: 10.1016/S0169-7218(10)01001-4.

1. Dynamic Nature of the Innovation Process: The innovative process is inherently dynamic, building on past knowledge, inventions, and innovations. This cumulative and evolving nature of innovation is a key theme, affecting how innovations are understood, learned from, and diffused across industries and economies.
   • By its nature, this dynamism means that measurement of information is hard, because you are trying to measure something that did not exist before.
2. Limitations of Static Economic Modeling: There’s a recognition of the limitations of static economic modeling in analyzing innovation. Given the dynamic and sometimes unpredictable nature of innovation, several chapters in the handbook propose alternative modeling approaches and emphasize the need for more dynamic analytical tools.
3. Multidisciplinary Nature of Innovation Research: The research on innovation is extensive and multidisciplinary, spanning various economic fields such as macroeconomics, industrial organization, public finance, and economic development. This research has developed into a cohesive network of economists who explore innovation and technical change from both evolutionary and traditional analytical perspectives.
4. Evolution from Technical Change to Innovation: The term “innovation” is preferred over “technical change” as it encompasses a broader range of economic changes beyond just hardware advancements. This includes software, research in universities and labs, and the generation of new ideas, reflecting the shift towards nonmanufacturing sectors and productivity changes not limited to organized R&D.
5. Influence of Joseph Schumpeter: The work of Joseph Schumpeter is highlighted as foundational in the field of innovation economics. Schumpeter focused on understanding how the economic system generates change from within, challenging the classical theory that confined economic study to stationary processes and highlighting the dynamic nature of capitalist economies.

Measuring innovation

• Macro and Micro Measurement: Innovation measurement encompasses both macroeconomic aspects like growth accounting and microeconomic aspects like the measurement of returns to R&D investments.
• Use of Qualitative Data: Apart from economic indicators, the measurement of innovation also includes noneconomic and qualitative data, such as patent data and data from innovation surveys.
• Policy Implications: Understanding and measuring innovation has direct implications for innovation policy, including the need for systemic approaches that consider factors beyond just assigning property rights to innovators.