New classical innovation economics is based on the strict and standard hypothesis that innovators needn’t to pay transaction cost and cognizance cost. Therefore

there is no real uncertainty and only the probabilistic risk in statistics exists. New classical innovation economics just takes innovation gains and cost into consideration which departs from the realistic consideration of innovation economics

so it has limitations in explaining and predicting innovation behaviors. New institutional economics further develops new classical innovation economics. It emphasizes positive transaction cost while ignoring cognizance cost. Behavioral economics takes positive cognizance cost as premise and uses behavioral economics heuristics and psychological bias to study innovation problems which compensates the boundedness of new classical rational choice innovation model and enlarges its theory scale. This shows that it is not comprehensive to only rely on market mechanism; corresponding systems and policy suggestions should be needed to improve innovation governance system which plays an important role in promoting entrepreneurship and innovation in the whole society.