Economics Essay

Economics on the Construction Sector: Innovation Look for Essay
Introduction
Ozorhon (2010) defines innovation as ‘the creation and adoption of new knowledge to improve the importance of products, processes and services’. This assignment will focus on economics and innovation within the construction sector. A theoretical framework are going to be utilized to highlight the key theories and concepts surrounding innovation, economics and construction. By drawing on theories of innovation, characteristics of innovation in construction as a project based market are going to be discussed. An emphasis will also be placed on how innovation can offer the organization a competitive advantage. Inside the final section, a important analysis in the relevance and significance of patents in the market will likely be presented. With links to academic research, as well as market examples, even though the central focus is going to be on innovation, other economic theories will be applied wherever necessary.

Theoretical Framework
Traditional economists argue that economic growth is often driven by capital accumulation, which Sloman (2007) notes as a form of growth with no any technological progress. This neoclassical approach to growth suggests ‘an enhance in capital per worker will typically improve output’, in which an enhance in output will need a lot more investment and resources. Innovation economists argue that the key driver of economic growth is innovation. Romer (2007) suggests that these kinds of growth cannot be achieved through saving or investment unless accompanied by many inventions and discoveries. This links for the 3 key concepts surrounding innovation economics: Invention, innovation and technology. Slaughter (1998) notes how invention ‘is a detailed model or model of a program or merchandise that may clearly be distinguished as novel compared to existing arts’, while innovation may be the use and development of new processes and tools devised from an invention. Technology is ‘the aggregation of all existing inventions...