The main goal of this course is to study innovation both from theoretical and empirical perspectives, and introduce students to the main research topics and key research papers in the field.
After this course student should be able to identify key research areas in economics of innovation and perspective areas for their own research.
The main focus will be on microeconomics, although we will also link innovation to economic growth theory, law and innovation management. We will study the optimal design of intellectual property rights, their pros and cons for innovation.
We will examine the connection between ideas, invention and innovation via intellectual property rights, knowledge spillovers and diffusion, incentives, public policies, environmental and entrepreneurship studies and other related topics.
A separate attention will be paid to National Innovation Systems, the Globalization of Innovation and Global Value Chains, Green Innovations.
We will analyze the behavior of individual innovative firms and innovation cases from economic perspective.
Literatura - angličtina
Poslední úprava: Oleg Sidorkin, Ph.D. (04.10.2018)
[SS] Scotchmer, Suzanne (2004) Innovation and Incentives, MIT Press. (CERGE-EI Library)
[H] Handbook of the Economics of Innovation (2010), Eds. Hall, B.H., Rosenberg, N., (Vol. 1, Vol. 2) Amsterdam: Elsevier. (CERGE-EI Library)
[SP] Swan Peter G. M. (2009) The Economics of Innovation, Edward Elgar. (CERGE-EI Library)
[T] Tidd, J., J. Bessant (2013) Managing Innovation. Integrating Technological, Market and Organizational Change 5th. ed., Wiley. (CERGE-EI Library)
[L] Lipczynski J., J.O.S. Wilson, J. Goddard (2013) Industrial Organization: Competition, Strategy and Policy, 4th ed., Harlow: Pearson. (CERGE-EI Library)
Associated articles will be available throughout the course.
Požadavky ke zkoušce - angličtina
Poslední úprava: Ing. Dagmar Schnellerová (11.10.2018)
The following parts will have an influence on your final grade (weights are approximate):
Presentation and reading assignments: 20%
Final exam: 50% Total: 100%
Extra points (questions and discussions) 20%
Extra points (an extra presentation)
You can earn extra points:
1. up to 20% of the final grade, if you submitting 1 insightful question until 7:00am, Thursday, before presentation, ask an insightful question in the class and participate in the discussion. 2. 10% of the final grade, if you present the second research paper (after everybody presents the first paper).
Sylabus - angličtina
Poslední úprava: Ing. Dagmar Schnellerová (11.10.2018)
Syllabus (dates are tentative, reading assignments will be updated)
Week 1. 05.10.2018 [Sidorkin] Introduction to the economics of innovation. [Srholec] An appraisal of the literature on innovation.
[H] Chapter 2
[SP] Chapter 3
Fagerberg J. (2004) Innovation: a guide to the literature in Fagerberg J. Mowery D. Nelson R. (ed) Handbook of innovation Oxford University Press.
Week 2. 12.10.2018 [Sidorkin] Process innovation: Fixed and marginal costs, economies of scale. Product innovation: Preferences, willingness to pay. Product proliferation, product choice, product competitiveness.
[SP] Chapter 4-5, Chapter 16
Brown R. (1991) Managing the s Curves of Innovation, Journal of Marketing Management 7(2): 189-202.
Belleﬂamme, P., & Peitz, M. (2015). Industrial organization: markets and strategies. Cambridge University Press. Chapter 19.1
Boldrin, M., Levine, D.K. (2013) The case against patents, Journal of Economic Perspectives 27(1): 3-22.
Week 6. 09.11.2018 [Srholec] Open innovation, collaboration and networking.
Chesbrough H. (2006) Open Innovation: A New Paradigm for Understanding Industrial Innovation in H. Chesbrough, W. Vanhaverbeke, J. West, Open Innovation: Researching a New Paradigm, Oxford University Press, Chapter 1
Miotti, L., and Sachwald, F. (2003) Co-operative R&D: why and with whom? An integrated framework of analysis. Research Policy, 32: 1481–1499.
Von Hippel, E. (2005) Democratizing Innovation, The MIT Press, Chapter 6.
Powell, W. W. and Grodal, S. (2005) Networks of Innovators in Fagerberg J., Mowery D, Nelson R. (eds.) Handboook of Innovation. Oxford University Press, pp. 56–85.
Zirpoli, F. & Becker, M. C. (2011) What happens when you outsource too much? MIT Sloan Management Review, 59–64.
Week 7. 16.11.2018 [Sidorkin] Optimal Design of Intellectual Property
[SS] Chapter 4
Belleﬂamme, P., & Peitz, M. (2015). Industrial organization: markets and strategies. Cambridge University Press. Chapter 19.2-19.3
Recommended reading: TBD
Week 8. 23.11.2018 [Srholec] Globalization of innovation, global value chains and upgrading.
Gereﬃ, G., Humphrey, G.J. and Sturgeon, T. (2005) The governance of global value chains. Review of International Political Economy, 12, 78-104.
Castellani, D. and Zanfei, A. (2006) Views on multinational ﬁrms and innovation in Castellani, D. and Zanfei, A. Multinational ﬁrms, innovation and productivity. Cheltenham: Edward Elgar.
Blažek, J. (2016) Towards a typology of repositioning strategies of GVC/GPN suppliers: the case of functional upgrading and downgrading. Journal of Economic Geography, 16, 849–869.
Narula, R. (2002) Innovation systems and ’inertia’ in R&D location: Norwegian firms and the role of systemic lock-in. Research Policy, 31, 795-816
Ali-Yrkkö, J., Rouvinen, P., Seppälä, T. and Ylä-Anttila, P. (2011) Who Captures Value in Global Supply Chains? Case Nokia N95 Smartphone. Journal of Industry, Competition and Trade, 11, 263-278.
Kraemer, K. L., Linden, G. and Dedrick, J. (2011) Capturing Value in Global Networks: Apple’s iPad and iPhone. University of California and Syracuse University.
Week 9. 30.11.2018 [Sidorkin] Financing innovation: Private investments, knowledge as a public good, public support (subsidies, loans, tax incentives), public-private partnerships.
[SS] Chapter 8;
Arrow, K. (1962) Economic Welfare and the Allocation of Resources for Invention, In R. Nelson, ed. The Rate and Direction of Economic Activities: Economic and Social Factors, p. 609-626.
Week 10. 07.12.2018 [Srholec] Systems of innovation.
[H] Chapter 27
Morgan, K. (2004) The exaggerated death of geography: learning, proximity and territorial innovation systems. Journal of Economic Geography, 4, pp. 3–21.
Chaminade, C. and Edquist, C. (2006) From theory to practice. The use of the systems of innovation approach in innovation policy, in Innovation, Learning and Institutions, eds. Hage, J., De Meeus, M., Oxford: Oxford University Press.
Lundvall, B. Å., Johnson, B. (1994) The Learning Economy. Journal of Industry Studies (Industry and Innovation), 1, 23–42.
Blažek J., Csank, P. (2016) Can emerging regional innovation strategies in less developed European regions bridge the main gaps in the innovation process? Environment and Planning C: Government and Policy 34, 1095-1114.
Week 11. 14.12.2018 [Sidorkin] The entrepreneurship and innovation.
[T] Tidd, J., J. Bessant (2013) Managing Innovation. Integrating Technological, Market and Organizational Change 5th. ed., Wiley. Chapter 11
Acs, Z.J.et al. (2009) The knowledge spillover theory of entrepreneurship, Small Business Economics 32 (1): 15-30.
Week 12. 21.12.2018 [Srholec] Innovation, capabilities and development.
[H] Chapter 20
Abramovitz, M. (1986) Catching Up, Forging Ahead, and Falling Behind, The Journal of Economic History 46 (2), 385-406.
Lall, S. (1992) Technological capabilities and industrialization. World Development 20, 165-186.
Fagerberg, J. and Srholec, M. (2008) National Innovation Systems, Capabilities and Economic Development. Research Policy, 37, 1417–1435.
Kim, L. (2003) The dynamics of technology development: Lessons from the Korean experience in Lall, S., Urata, S. (Eds.), Competitiveness, FDI and Technological Activity in East Asia. Edward Elgar, Cheltenham, pp. 143-167.
Week 13. [Sidorkin] TBD
In the beginning of each lecture we will hold a 5-minute short quiz covering the topics of previous lectures.
Reading and discussion sessions (guidelines and topics will be updated):
Reading actual research papers and studying real-life innovation cases are important parts of the learning how innovation works. Therefore our exercise sessions are divided into two parts:
Research papers. During this session you read research papers on the topics, related to lectures, and give presentations about their main results (most likely in pairs). Please, be ready to participate in the discussions.
Case studies. For this session you read about actual ﬁrms and be ready to give presentation about its innovation success (and decay), analyze and discuss ﬁrms’ innovation strategies, response of competitors, impact on the markets, social welfare, and other questions connected to material covered in lectures.