Innovative products and services provide the foundation of economic change. Many of the products and services that we take for granted today were not even invented or barely known to a broad public 20 years ago. Explaining how innovations are generated, how they diffuse in the economy and how they affect economic growth and development is associated with substantial theoretical and empirical challenges for economics. A rich and diverse literature deals with these challenges. This course will introduce students to selected concepts, theories and findings in the economics of innovation. We will also discuss intellectual property rights and selected contributions to growth theory that focus on innovation. The final section is dedicated to public policy issues related to innovation.