Economics of Wealth Creation

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.