Lecturer: Margherita Balconi  

Course name: Economics of Innovation
Course code: 500374
Degree course: Ingegneria Elettrica, Bioingegneria
Disciplinary field of science: SECS-P/06
The course relates to:
University credits: ECTS 6
Course website: n.d.

Specific course objectives

The course aims at providing students with the main conceptual frameworks developed by the economic literature to understand firms' innovative strategies, high-tech entrepreneurship, the dynamics of competition and the rationale underpinning public policies regarding technology transfer, intellectual property rights and research funding. Particular attention is devoted to general purpose technologies such as communication and information technologies (ICTs) and to the patent system. The knowledge acquired by attending the course is fundamental for managers and entrepreneurs operating in the science and technology system of the knowledge based economy.

Course programme

Introduction
From static to dynamic competition. The resource-based view of the firm. Dynamic capabilities. Resources and competences, competitive advantages and rents.

Innovation and research
Basic research, applied research and development. The linear model of innovation, the chain-linked model and the quadrant model of scientific research. The relationships between universities and industry. The economic rationale for public funding of basic research. Technological paradigms and technological trajectories. The Republic of Science and the Realm of Technology.

The process of innovation
The main features of the process of innovation. The sources of innovation. The learning curve. Sectoral models of technical progress. The main indicators of innovation. The technological balance of payments. National innovation systems.

Appropriability and incentives to innovation
The main methods of appropriability. The patent system. The main trade-offs. The European and American patent systems: the main institutional aspects. Economic theories on the benefits and costs patents. Patent system and market structures. Strategic patenting. Monopoly power and sleeping patents. Patent statistics. The issue of patent quality.

Uncertainty and the limits to rationality
The inertia of big firms. The attackers' advantage with disruptive technologies. Case study: the rigid disk drives industry.

Entrepreneurship in high-tech industries
The discovery of entrepreneurial opportunities. Entrepreneurial decision-making. The acquisition of financial resources in conditions of uncertainty and asymmetric information. The organizing process.

Economics of information
Production and exchange of information-goods. Setting the price of information-goods. Networks externalities and other forms of increasing returns. Dynamic competition with path-dependency and possible lock-in.

Internazionalization of production and R&D activities
Various types of internationalization activities. The main economic models to account for the process of internationalization of production. Asset exploiting and home-base exploiting internationalization forms of R&D. Global value chains.

Course entry requirements

Basic notions of microeconomics

Course structure and teaching

Lectures (hours/year in lecture theatre): 45
Practical class (hours/year in lecture theatre): 0
Practicals / Workshops (hours/year in lecture theatre): 0

Suggested reading materials

Reading material is downloadable from the website http://economia.unipv.it/webbalco/EcoInno.htm

Titolo del riferimento da modificare.

Testing and exams

Written examination with open questions