Please note: the information in the course manual is binding.
After completion of the course, the student is able to:
- understand what an innovation is from an economic perspective;
- understand that investments in innovation are inherently uncertain, and that companies are therefore learning by trail-and-error rather than taking fully rational decisions as assumed in micro-economics;
- be able to explain the pros and cons of different technology design strategies;
- mathematically understand how products spread in social networks;
- mathematically understand under what conditions lock-in occurs;
- understand the rationale of the patent system, as well as its pros and cons;
- understand knowledge appropriation strategies other than patenting;
- understand the notions of technological regime and product life cycle, and its implications for industrial dynamics and geographical clustering;
- understand firm rationales for co-location;
- understand evolutionary growth theory and the recent debate on robotization;
- get an overview of innovation policies and main rationales;
- understand the disruptive role of online platform in the current economy;
- understand user innovation from an economic perspective;
- write an academic paper;
- critically review the literature in a group discussion on the basis of propositions;
In the course Economics of Innovation, we focus on the economic aspects of innovation and diffusion at the micro-level of the firms, the meso-level of industries, and the macro-level of the national economies. The first part of the course is about mathematical models of innovation and diffusion, and the role of patents. The second part focuses on innovation and competition at the level of firms, industries and countries using the theory of evolutionary (“neo-Schumpeterian”) economics. Finally, we devote special attention to the role of ICTs in the current economy.
This course includes an Honours component.
This course is the entry requirement for
- Management of Innovation Processes (GEO3-2221)
- Bachelor’s thesis GSS, track B&I (GEO3-2422)