The course provides an overview of the main developments and challenges in economics of innovation and industrial dynamics. The course discusses the processes driving innovation within firms by relying on the evolutionary approach. After defining the concepts of invention and innovation, it identifies the sources of innovation discussed through the lens of the “linear” and the “chain-linked” model. Particular attention is devoted to the role played by basic research in the innovation process. Then, the course examines innovation at the sectoral level and how innovation affects the dynamics and the evolution of industries. Specifically, the course describes the life cycles of different industries and the role of technological regimes in shaping the industry structure. The course concludes with an overview of the intellectual property rights. The course will be taught in English.