FMS7XX ECONOMICS of INNOVATION

FMS7XX

Economics of Innovation

Credits : 3 ECTS

Duration : 21 hours

Semester : S7

Person(s) in charge:

Pierpaolo Parrotta, ICN and BETA, pierpaolo.parrotta@icn-groupe.fr

The course will be taught in English.

Keywords :   innovation, growth, market failure, R&D financing, competition, business strategy, disruptive innovation.

Prerequisites : Foundations of microeconomics (law of demand and supply, market equilibrium, perfect competition, monopoly power).

Goal:   understand theories of innovation and the recent trends at the country/industry/firm level. 

Program and contents :

1. Introduction, rationale and objectives 
2. Innovation and growth 
3. Innovation and sustainability 
4. Innovation and competition 
5. The geography of knowledge 
6. Financing Innovation 
7. Evaluation of innovation policies 
8. Recent policy trends 

Abilities: 

Levels

Description and operationnal verbs

Know

Principles of economics of innovation

Understand

Asymmetric information, uncertainty and market failure; link between innovation and growth; public support to private R&D, additionality versus crowding-out; link between innovation and competition; mechanisms of knowledge transfer.  

Apply

Theory to open source data (OECD, Eurostat, WDI) and business cases.

Analyze 

Policy reports and business cases concerning innovation.

Summarize

Main features of innovation at the country, industry and firm level.

Assess

Effectiveness of national or EU innovation policy and firm’s innovation strategies.

Évaluations :

• Written exam

• In-class assessment

• Oral report

• Project

• Written report