ECONOMICS OF INNOVATION AND DEVELOPMENT-1

The course intend to form knowledge on development and innovation. First, development is analyzed and linked to innovation, as a basic tool to achieve long run development. Than innovation is introduced, in its basic aspects.

1) Knowledge and understanding
Acquire the basic concepts of the development economy and innovation.
Know the main models of analysis of the development and innovation economy.
Understand and critically consider the main economic policies on technological innovation and innovation development.
Know and know how to use data related to innovation.
2) Ability to apply knowledge and understanding
Use the concepts learned to interpret the evolution of economic systems, public policies, business strategies and market regulation with regard to the innovation economy.
3) Ability to judge
Knowing how to formulate and argue interpretative hypotheses on the development of technologies and the consequent effects on economic agents
4) Communication skills: the student must be able to synthesize the acquired knowledge in an efficient and coherent way.

Micro and macroeconomics.

Part A: Development Economics
This section will discuss the field of Development Economics, linking development to growth and innovation.
We will try to give answers to the following questions:
• What made the difference between rich and poor countries?
• What are the forces that drive catching-up of the poor countries with the rich and forces that drive “divergence”?
We also connect the debate over development with a forward perspective, looking at macro-economic forecasts, at country level, in the long-run.
You should also acquire knowledge and expertise in economic data available for the different countries, on income and development indicators.
Part B: Economics of Innovation
This part will introduce to economics of innovation. After an introduction to the topic and the knowledge of some basic taxonomy, the following topics will be discussed:
Introduction to Innovation
Measure of Innovation
The innovative firm, National Innovation Systems and Innovation Policy
Diffusion and Patents
Web innovation

Part A
• Helpman, E. (2009). The mystery of economic growth. Harvard University Press.
• 2016 Human Development Report, available at http://hdr.undp.org/sites/default/files/2016_human_development_report.pdf
• Grossman, G. M., & Helpman, E. (2015). Globalization and growth. The American Economic Review, 105(5), 100-104.
• Forecast on World Economy for 2050 by Economist (on ISA as Reading S1)
• World Bank International Comparison Program (ICP), at http://siteresources.worldbank.org/ICPEXT/Resources/ICP_2011.html
• World Bank World Development Indicators at https://data.worldbank.org/data-catalog/world-development-indicators
• Undp Human Development Indicators, at http://hdr.undp.org/en/data
• Chen, S. and M.Ravallion, ‘The developing world is poorer than we thought, but no less successful in the fight against poverty’, Quarterly Journal of Economics 125(4) 2010, pp.1577–625.
• Deaton, A., ‘Understanding the mechanisms of economic development’, Journal of Economic Perspectives, 24(3) 2010, pp.3–16.
• Ravallion, M., ‘The mystery of the vanishing benefits: an introduction to impact evaluation’, World Bank Economic Review, 15(1)2001, pp.115–40.
• Tribe, Michael and Andrew Sumner. "Development economics at a crossroads? Introduction to a policy arena." Journal of International Development, 18.7(2006): 957-966.

Part B
• Chapter 1 by Fagerberger J., “Innovation: a guide to the Literature” (available in ISA as Reading 1) in Fagerberg, J., Mowery, D. C., & Nelson, R. R. (Eds.). (2005). The Oxford handbook of innovation. Oxford university press.
• European Commission (2017) European Innovation Scoreboard 2016, Bruxelles. http://ec.europa.eu/growth/industry/innovation/facts-figures/scoreboards_en
Focus: "Innovation in clusters”, Seminar by Joel Svedlund
• http://peakinnovation.se/en/
• Smith K., “Measuring Innovation”, Ch. 6 in the Handbook, available in ISA as Reading 2.
• Community Innovation Survey, http://ec.europa.eu/eurostat/web/microdata/community-innovation-survey
• Lazonick W. “The Innovative Firm”, Ch. 2 in the Handbook, available in Isa as Reading 3.
• Lundvall B. and S. Borrás (2005) “Science, Technology and Innovation Policy”, in the Handbook, available in Isa as Reading 4.
• Edquist C. (2005) “Systems of Innovation”, in the Handbook, available in ISA as Reading 5.
• Bronwyn H. Hall B.H. (2005), “Innovation and Diffusion”, in the Handbook, available in ISA as Reading 6.
• Pant, S., & Hsu, C. (1996). Business on the Web: strategies and economics. Computer Networks and ISDN Systems, 28(7-11), 1481-1492.
• Greenhalgh, C. A. and Rogers, M. (2006), ‘The value of innovation: The interaction of competition, R&D and IP’, Research Policy, 35(4), 562-80.
• Fichter, K., & Clausen, J. (2016). Diffusion Dynamics of Sustainable Innovation-Insights on Diffusion Patterns Based on the Analysis of 100 Sustainable Product and Service Innovations. Journal of Innovation Management, 4(2), 30-67.
• Karakaya, E., Hidalgo, A., & Nuur, C. (2014). Diffusion of eco-innovations: A review. Renewable and Sustainable Energy Reviews, 33, 392-399.
• Rockett K. (2008) “Property Rights and Invention”, Discussion Paper Series, No. 663 December, University of Essex. Available in ISA as Reading 7.

Attending students are required to:
1. Actively participate to class
2. Present a group work, according to instructions given along the course
3. Take a written examination, covering the material of the present syllabus (excluded the reference in italic), consisting of three multiple-choice questions (with a short description of the choice) and two open questions.
The final grade will be an average of the three points above.

b) Non attending student
Non attending student are required to take a written examination on the material indicated in the present syllabus.
The exam will consist of three multiple-choice questions (with a short description of the choice) and two open questions.

In class teaching
Seminars
Group works

English

written