Economics of Wealth Creation

Course code ECON3005Units 10Level 3000Faculty of Business and LawNewcastle Business School

This course builds on the microeconomic principles developed in first and second year by extending students knowledge of markets and the firm to the role of the entrepreneur and innovation in the wealth creation process. The later includes discussion of bootstrapping where business ideas are developed within the context of financial constraints, but where economic resources are still required to be mobilised to commercialise new products and services.

The course explores how building wealth in the firm is linked to developing intellectual capital and knowledge management that in turn promote production and product development. This theme is expanded to the concept of knowledge sharing through inter-firm alliances and networks that sometimes develop into industry clusters. Government policies to support these processes of business development, technological progress and innovation are reviewed. Drawing on case studies and policy analysis this course will provide a critical understanding of the innovative behaviour of firms and corporate management strategy.

Available in 2015

Callaghan CampusSemester 2
Previously offered in 2014
ObjectivesUpon successful completion of this course, students will be able to:
1.Incorporate the role of the entrepreneur into the economic theory of the firm.
2.Understand the nature of firm development from inception and how resources are harnessed for its growth.
3.Appreciate the significance of knowledge development in production and product innovation.
4.Identify the synergies between technology and innovation and evaluate government policies aimed at their development.
5.Understand the importance of the spatial dimension to firm alliances through business clustering and its relevance to regional development policy.
ContentThis course includes but is not limited to the following topics:
1. Sources of wealth creation.
2. The role of the property market in investment and production.
3. Risk in business, and economic development.
4. The entrepreneur in economic theory.
5. Sustainable competitive advantage in business.
6. The entrepreneurial process in practice.
7. Wealth creation and knowledge management.
8. Innovation and product development.
9. The role of inter-firm relations, networks and business clusters.
10. National and regional innovation strategies and government policy.
Replacing Course(s)This course replaces ECON3001 and ECON 3300.
TransitionThis course is not available to students who have successfully completed ECON3001 and ECON3300.
Industrial Experience0
Assumed KnowledgeECON1001, ECON2001
Modes of DeliveryInternal Mode
Teaching MethodsLecture
Tutorial
Assessment Items
Examination: ClassMid semester test
Essays / Written Assignmentsgroup/individual assignments
Examination: Formal
Contact HoursLecture: for 2 hour(s) per Week for Full Term
Tutorial: for 1 hour(s) per Week for 12 weeks
Timetables2015 Course Timetables for ECON3005