Business innovation and success are massively affected by the characteristics of its institutional environment; subsidized funding possibilities and rewards for innovation such as prizes and intellectual property rights (e.g., patents) are among the prominent ones. In the course we work on understanding these institutions and their consequences for the innovation process. We discuss the benefits and challenges of cumulative innovation, patents- and copyright enforcement, and IP licensing. Furthermore, we analyze the interplay between specific business and market conditions (e.g., competition, network effects) and the incentives to innovate. Thereby, we also focus on the optimal organization of the innovation process (e.g., in joint ventures) and the importance of the market for innovation (specialization on innovation vs. in-house innovation). In a nutshell, the course provides a toolbox to analyze the ingredients for and threats to a successful commercial viability of innovations