Course 2011-2012 a.y.

Course Objectives

The course provides a survey of a wide range of topics in the economics of innovation and technical change. Topics to be discussed include: the relations among innovation, eco­nomic growth and economic development, the economics of patents and intellectual pro­perty rights, the role of innovation in the dynamics and evolution of industries, the rela­tionships between science and technology. The last part of the course discusses the role of public policies with respect to innovation and technical change.
Pre-requisites: basic courses on microeconomics and industrial organization.
The class format is a mix of lectures and discussions. Students are expected to partici­pate actively in the discussions, reading the assigned material for each topic before class.
Tutorials and seminars on the history of specific industries and technologies are organ­ized during the course.

Course Content Summary

Economics of innovation: overview

• Technical change and economic growth
• Technology and economic development
• Microeconomics of innovation: theory and models

Economics of patents

• Patent length, breadth and height
• Strategic use of patents
• IPR, licensing and antitrust

Economics of knowledge

• Knowledge as a public good
• Tacit and codified knowledge
• Relationships among actors: science-technology links
• Economics of scientific research

Innovation and market structure

• Incentives to innovation
• R&D and patent races
• Innovation and industrial dynamics
• R&D, firm size and entry of new firms
• Strategic alliances and networks
• Localisation and globalisation of R&D

Innovation diffusion and network externalities

• Models of innovation diffusion
• Competing technologies and network externalities
• Economics of technological standards
• Competition in the network industries

Public policies and the role of governments

• Public policies supporting R&D and innovation diffusion
• National research systems and public funding of R&D
• Integration of national research systems: the European Research Area
• Innovation, technological co-operation and competition policies

Detailed Description of Assessment Methods

The exam consists of two written partial exams, which take place during the course, and a written final exam.

The final mark is based on both partial exams and final exam and also on active participation in class.

Textbooks

A list of textbooks is made available at the beginning of the course.