This chapter explains how the economics of innovation works for the transition. We explain how innovation creates resources but also generates upheaval. We narrate how seeking optimal economic performance, in fact, corresponds to reducing the resilience of the economy and promoting instability. We explain a key concept of complexity science: the trade-off between performance and stability in systems that grow over time, like the economy. If we let the economy or the financial sector grow too fast, chances are higher that it will crash. The meaning of this is that we must pace the low-carbon transition carefully, create resilience and give it strict guardrails, so that it stays on track, as we create new resources with low-carbon innovation.