Chris Farrell Ph.D. is a seasoned corporate innovator with a lifelong interest in understanding
fundamentals. From this unique vantage, he has synthesized a completely original approach to the
economics of innovation. Using commercial data it took ten years to track down and collect, previously
intractable problems are solved with profound and numerous consequences; as the following pages show:
Business Innovation Economics
The long sought after algebraic connectivity between innovation and
economic growth has been discovered, with penetrating consequences for
national policy in a globally interacting world.
This achievement required data that has been sought for decades, an issue
that caused a President of the American Economic Association to ask,
‘What is it about our data and data acquisition structure, and possibly also
our intellectual framework, that prevents us from making more progress
on this topic?’
He was right on data. It has indeed been constrained from campus access,
unstructured and hidden in commercial reports; within factories, corporate
offices and technical centers. However these resources are readily
available to industry insiders, and especially to innovation professionals.
And he was right on intellectual framework. This needs to be commercial,
which is our domain, and that puts us in a better position to understand
and articulate the missing economics.
But it has still taken many years of practical scholarship to formalize tacit
commercial economic knowledge to the point where it can leapfrog the
frontiers of innovation economics far beyond where Zvi Griliches left them.