Part I, The nature and extent of soft innovation. Defining soft innovation ; Aggregate measures of soft innovation ; Soft innovation in the creative industries : books, recorded music, and video games; Soft innovation outside the creative industries : food, pharmaceuticals, and financial services -- Part II, The economic analysis of soft innovation. The economic analysis of TPP innovation as a foundation for the analysis of soft innovation ; The supply of soft innovations ; The diffusion of soft innovations ; Soft innovation and uncertainty : variant proliferation, insurance markets, and finance ; Soft innovation, intellectual property rights, competition, and welfare -- Part III, Impacts and implications. The impact of soft innovation upon firm performance ; Soft innovation and government policy ; Conclusions and future projects.