“Health economics” can be defined as the application of economic principles, theories, tools and concepts to the topics of health and healthcare to manage health institutions and health delivery systems efficiently. Health economics studies issues related to the efficient utilization of scarce economic resources (e.g., human resource, materials, and financial resources) to improve health. This includes both resource allocation within the economy to the health sector and within the healthcare system to different activities and individuals. The purpose of this module is to introduce you to fundamental concepts of economics as it is applied to healthcare, with an emphasis on innovation.