Innovation and Structural Change

Code:

LEC308

Acronym:

MEI

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2007/2008 - 2S

Active?	Yes
Responsible unit:	Grupo de Economia
Course/CS Responsible:	ECONOMICS

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
ECO	449	Official Curricular Structure since 2004	3	2		-

Teaching language

Portuguese

Objectives

1. To identify the essential features of the paradigms of structural change and of evolutionary economics .
2. To explain the main stylised facts of long term structural change and of technological innovation.
3. To discuss and critically assess trade and technological policies in developing as well as OECD countries.

Program

I. METHODOLOGY AND BASIC CONCEPTS
I.1. Introducing the topics of structural change and innovation
II. LONG TERM DYNAMICS AND STRUCTURAL CHANGE
II.1. Essential features of the paradigm of structural change
II.2. Stylised facts of structural change
III. INDUSTRIALISATION AS THE ENGINE OF ECONOMIC GROWTH
III.1. Does the abundance of natural resources inhibit growth?
III.2. Social and technical division of labour and the enlargement of the market. The BIG-PUSH debate.
III.3. On foreign trade, externalities andeconomic growth: the G. Feder model
III.4. On equipment investment and economic growth
III.5. Assessing trade policy in developing countries
IV. A BASIC FRAMEWORK FOR THE ANALYSIS OF INNOVATION
IV.1. Theoretical foundations of modern evolutionary economics
IV.2. Innovation and macroeconomic dynamics
V. EXPLAINING INNOVATION
V.1. Demand pull versus technological push
V.2. Sectoral determinants of innovation
V.3. Spatial determinants of innovation
V.3. Innovation and the institutional framework

Mandatory literature

BELL, Martin e PAVITT, Keith ; “Technological Accumulation and industrial growth: contrasts between developed and developing countries”, in D. Archibugi e J. Michie (1997), Technology, Globalisation and Economic Performance, Cambridge University Press , 1997
CAMAGNI, Roberto ; “Local Milieu, uncertainty and innovation networks: towards a new dynamic theory of economic space”, in R. Camagni (1991) (editor), Innovation Networks: spatial perspectives, Londres: Belhaven Press , 1991
CHENERY, Hollis (1988) “Structural Transformation: A program of Research”, in G. Ranis e T.P. Schultz (1988), The State of Development Economics, Basil &Blackwell, pp.49-68
DE LONG, Bradford e SUMMERS, Lawrence (1993), “How Strongly Do Developing Economies Benefit from Equipment Investment?”, Journal of Monetary Economics, vol.23, pp. 395-415
FAGERBERG, Jan (1987), “A Technology Gap Approach to Why Growth Rates Differ”, Research Policy, Agosto, reeditado em C. Freeman (1990), The Economics of Innovation, Edward Elgar
FIELDS, Gary (2001), Distribution and Development, cap. 3 (Economic Growth and Inequality – a review of the empirical evidence), MIT Press, 35-71
FEDER, G. (1982), “On Exports and Economic Growth”, Journal of Development Economics, Vol. 12(1-2), pp. 59-73.
KRUGMAN, Paul “The Fall and Rise of Development Economics”: http://web.mit.edu/Krugman/www/dishpan.html
NELSON, R. (1988), The Agenda for growth theory: a different point of view, Cambridge Journal of Economics, 497-520
ROSENBERG, Nathan e FRISCHTAK, C. (1984), “Technological Innovation and long waves”, Cambridge Journal of Economics

Complementary Bibliography

Abramovitz, Moses (1986), “Catching-up, Forging Ahead and falling Behind”, Journal of Economic History, volume 46, nº 2, pp.385-406
Baumol, William J. (2002), The Free-Market Innovation Machine: Analysing the Growth Miracle of Capitalism, Princeton, New Jersey: Princeton University Press
Freeman, C. e Soete, L. (1997), The Economics of Industrial Innovation, 3ª edição, Londres: Pinter
Freeman, C. (2004), “Technological infrastructure and international competitiveness”, Industrial and Corporate Change, volume 13, nº 3, pp. 541-569
Hall, Peter (1993), Innovation, Economics and Evolution: Theoretical Perspectives on Changing Technology in Economic Systems, New York: Harvester Wheatsheaf
Lundvall, Bengt-Ake e outros (2002), “National systems of production, innovation and competence building”, Research Policy, volume 31, pp.213-231
Maddison, Angus (2001), The World Economy – a millennial perspective, OECD Development Centre Studies, Paris: OCDE
Nelson, R.R. (editor) (1993), National Innovation Systems: A Comparative Analysis, New York: Oxford University Press
Nelson, R. R. (1995), “Recent evolutionary theorizing about economic change”, Journal of Economic Literature, volume 33, pp.48-90
Nelson, R.R. (2003), “On the uneven evolution of human know-how”, Research Policy, volume 32, pp.909-922
Nelson, R.R. (2004), “The Market Economy and the scientific commons”, Research Policy, volume 33, pp.455-471
Nelson, R.R. e Pack, Howard (1998), “The Asian Miracle and Modern Growth Theory”, Policy Research Working Paper nº 1881, Washington: World Bank
Nelson, R.R. e Winter, S. (1982), An Evolutionary Theory of Economic Change, Cambridge, M.A.: Harvard University Press
Pack. Howard (2000), “Industrial policy: growth elixir or poison”, The World Bank Research Observer, volume 15, nº1, pp.47-67
Pavitt, K. (1984), “Sectoral Patterns of Technical Change: Towards a Taxonomy and a Theory”, Research Policy, volume 13, pp. 343-373.
Schumpeter, Joseph (1934), The Theory of Economic Development, Cambridge, MA: Harvard University Press

Teaching methods and learning activities

Particular emphasis will be placed on linking theoretical frameworks to empirical evidence.
SIGARRA will be used on a regular basis to disseminate information to students.

Evaluation Type

Distributed evaluation without final exam

Eligibility for exams

General regulations apply

Calculation formula of final grade

General regulations apply

Special assessment (TE, DA, ...)

For ERASMUS students only.Depending on their background and language skills, these students may be offered the option of an alternative written or oral examination.

Classification improvement

General regulations apply