Economics of innovation

In an increasingly globalized world characterized by rapid technological change and intense competition, innovation becomes a major weapon in the arsenal of companies to remain competitive in global markets. Firms can pursue different strategies to be innovative. Among the strategies are R&D investment, strategic alliances with other companies, involving users in new product development, or collaboration with university. The extent to which such strategies are effective differs from industry to industry and from technology to technology, and from country to country. To understand innovation processes from an economic point of view, you will learn to study innovation as a complex and multifaceted phenomenon. A key issue has been in these fast changing markets, how to protect your innovation against imitation from competitors. Innovators have a number of options to protect their intellectual property rights ranging from assigning patents, receiving a copyright or getting a trademark. All of these protection mechanisms can have positive effects as they foster innovation on the firm level, but also negative effects on the industry level as processes of diffusion of innovations are hampered. There is a role of government policy in providing the right incentives for protecting innovations in terms of length of protection or depths of protection (what is protected). In this context, different real-life cases are discussed. Key issues examined during the sessions are related to the characteristics of innovative firms; the firm as a bridge between science and markets, different modes to protect innovation from imitation, and different forms of firm collaboration. Finally, the role of government policy and regulation is related to the efforts of innovative firms. In the different courses, a variety of economic and econometric techniques and skills will be taught to analyze the structure and dynamics of industrial sectors, to measure innovations and to quantify the social benefits of government intervention. For further deepening their knowledge and skills, students can participate in an additional fourth course 'Economics of Innovation: Advanced'.