Economics

The course aims at introducing theoretical models dealing with technological change and innovation. In, particular the course focuses on: i) the unfolding of technological change and innovation, taking into account the multitude of forms that innovation might assume (i.e. Research and Development, process, product, organizational and patent innovation) ii) the diffusion of innovation iii) the link between innovation and market forms iv) the relationship between innovation and economic performance analyzed at micro (enterprise), meso (sector) and macro (nation) level v) the relationship between innovation, labor markets and income distribution. As a starting point, a brief empirical overview of the key technological waves unfolding throughout history as well as of the technological performance of the major world economies will be provided. The course will refer to a plurality of literature strands (classical, neoclassical and evolutionary) and will be characterized, alongside a detailed illustration of the main theoretical models, by the presentation and discussion of scientific contributions - both theoretical and empirical - of high relevance for the economics of innovation. 1. Technological change and innovation: introductory concepts, economic theories and stylized facts Introduction: what is technological change? Innovation according to the Classics The contribution of Joseph Schumpeter Some stylized facts Franco Malerba (ed.), Economia dell'innovazione, Carocci, Rome, 2002 (chapter 1) Jan Fagerberg, David Mowery and Richard Nelson (ed.), Innovation. Businesses, Industries, Economies, Carocci, Rome, 2007 (Chapter 1 - paragraphs 2, 3, 4 and 5). 2. Theory and evolutionary models Introduction Knowledge, enterprise and innovation Innovation, industrial dynamics and evolution of industries The Nelson and Winter's model The 'history fiendly' models Knowledge, technology and sectoral boundaries Agents, interactions and networks The institutions Franco Malerba (ed.), Economia dell'innovazione, Carocci, Rome, 2002 (Chapter 3 - paragraphs 3.2 and 3.3; Chapter 4 - paragraphs 4.1, 4.2, 4.3) Jan Fagerberg, David Mowery and Richard Nelson (ed.), Innovation. Businesses, industries, economies, Carocci, Rome, 2007 (Chapter 5 - excluding paragraphs 1, 2, 8 and 9). 3. Neoclassical models of R&D, business strategy and market structure R&D activity with a strategic approach Non-cooperative innovative activity Innovative cooperative activity Franco Malerba (ed.), Economia dell'innovazione, Carocci, Rome, 2002 (chapter 2) 4. The innovative enterprise Social conditions for an innovative enterprise The great managerial enterprise Organisational patterns and routines Skills and mutation of industries Business boundaries: consistency, vertical integration, diversification and networking Franco Malerba (ed.), Economia dell'innovazione, Carocci, Rome, 2002 (Chapter 3 - paragraphs 3.2 and 3.3; Chapter 6 - excluding paragraphs 6.7 and 6.8) Jan Fagerberg, David Mowery and Richard Nelson (ed.), Innovation. Businesses, industries, economies, Carocci, Rome, 2007 (Chapter 2 - paragraphs 2, 4, 5 and 6). 5. Innovation and economic performance Growth and technology: the mainstream approach Competing paradigms on the relationship between growth and technology Jan Fagerberg, David Mowery and Richard Nelson (ed.), Innovation. Businesses, Industries, Economies, Carocci, Rome, 2007 (chapter 8 - except par. 4). 6. Innovation and the labour market The effects of technological change on the amount of employment The effects of technological change on the quality of employment The effects of technological change on income distribution Jan Fagerberg, David Mowery and Richard Nelson (ed.), Innovation. Businesses, Industries, Economies, Carocci, Rome, 2007 (chapter 9 - except par. 5). Guarascio, D., & Sacchi, S. (2017). Digitisation, automation and the future of work INAPP Paper Guarascio, D., & Pianta, M. (2018). Technology and income inequalities. In Franzini M., Raitano M. (ed.), Il mercato rende diseguali, Bologna, Il Mulino, 231-253.

Knowledge and understanding: The course aims at providing the basic concepts and theoretical elements of the Economics of Innovation by referring both to the innovation process as such - emphasising the determinants, obstacles and nature of such process – as well as to its economic implications. Using the theoretical and analytical tools they will receive during the course, students will be able to define and analyse technological and innovative phenomena, their economic consequences and related policies. Applying knowledge and understanding: By applying the theoretical and analytical tools provided during the course, students will be able to analyse key phenomena for the Economics of Innovation such as the introduction of process and product innovation, the relationship between innovative inputs and outputs, the dynamics of patents, the economic and employment impact of innovation and the linkage between innovation and market structure. Making judgement: Students will develop autonomy of judgement regarding the analysis of the economic impact of innovation, including heterogeneities between different types of innovation and the link between the potential economic consequences of innovation and the characteristics of the economic context where these consequences occur. Communication skills: Students will develop the ability to use analytical tools in order to understand and illustrate in written and oral form the characteristics, determinants and economic implications of technological innovation. Learning skills: Students will learn about the salient features and evolutionary process that characterizes technological change and innovation by recognizing the heterogeneity that characterizes such process and by critically interpreting the economic implications of different forms of innovation.

Economia dell’Innovazione di F. Malerba, Carocci editore Innovazione. Imprese, industrie e economie di J. Fagerberg, D. Mowery e R. NelsonCarocci editore Guarascio, D., & Sacchi, S. (2017). Digitalizzazione, automazione e futuro del lavoro INAPP Paper Guarascio, D., & Pianta, M. (2018). Tecnologia e disuguaglianze di reddito. In Franzini M., Raitano M. (a cura di), Il mercato rende diseguali, Bologna, Il Mulino, 231-253.

The course is held relying on frontal lectures wherein, using slides, the topics included in the programme are illustrated and explained. The teacher will stimulate students' active participation. Some lessons may include the collective discussion of scientific articles relevant for the topics covered in class.

Not mandatory

The exam includes a written and an oral text

The course is held relying on frontal lectures wherein, using slides, the topics included in the programme are illustrated and explained. The teacher will stimulate students' active participation. Some lessons may include the collective discussion of scientific articles relevant for the topics covered in class.