Innovation Economics

Code:

1EC401

Acronym:

EINOV

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2017/2018 - 2S

Active?	Yes
Responsible unit:	Agrupamento Científico de Economia
Course/CS Responsible:	Bachelor in Economics

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
LECO	115	Bologna Syllabus since 2012	3	-	3	42	81

Teaching language

Suitable for English-speaking students

Objectives

The purpose of the course is both to discuss  the main perspectives that have emerged along time, and particularly in the last decades, about the role of innovation in the economy and in society and
to provide students with the needed instruments to answer questions such us: what is innovation? How does innovation contribute to the different economies’ performance? What is the source of innovative capability occurring in different sectors, regions and countries? How does research and science affect innovation? What is the policy role in supporting innovation?

Learning outcomes and competences

To Know and to apply the main theories of Innovation.

To discuss and to assess the main options of technological policy.

Working method

Presencial

Program

1. Concepts and Measurement
1.1. The innovation process: Invention, innovation and diffusion. Technological innovation and other types of innovation.
1.2. Innovation Taxonomy: Freeman approach
1.3. Science, technology and innovation: indicators. The European Innovation Scoreboard

2. Innovation and economic dynamics
2.1. Innovation, economic growth and structural change
2.2. The pioneer approach of Schumpeter: the capitalism as a creative destruction process.
2.3. Innovation and long cycles: the Freeman/Perez proposal
2.4. Innovation, diffusion and growth: the Fagerberg’s “technology gap" model.

3.Fundamentals of Innovation: general framework
3.1. The modern evolutionism
3.2. Firm Determinants. The firm central role– dimension and structure. The role of multinational companies. Innovation networks.
3.3. Innovation process and technological trajectories

4. Sectoral patterns of Innovation
4.1. Appropriability, technological opportunities and cumulativeness
4.2. The Pavitt’s taxonomy
4.3. Dynamics of Pavitt’s taxonomy: application to the industrialization analyses

5. Innovation and Territory
5.1. The role of proximity on the Innovation processes: networks and Innovator milieus
5.2. Creative Cities

6. Innovation Systems
6.1. Concept and functions
6.2. National Systems of Innovation. Comparative analysis at the OECD and EU level.
6.3. Regional Systems of Innovation. SRI taxonomy: the Asheim and Gertler analysis.


7. Innovation Policy
7.1. Foundations: appropriability, market failures and coordination failures; private return and social return of innovative activities.
7.2. The intellectual property problematic and the economics of patents
7.3. Other policy instruments: public investment; financial and fiscal incentives; promotion of technologic entrepreneurship.

Mandatory literature

Argentino Pessoa; Economia da Inovação, CreateSpace, Charleston, SC, USA, 2014. ISBN: ISBN: 978-1503326675
Argentino Pessoa; Innovation and Knowledge Economics, CreateSpace, Charleston, SC, USA, 2012. ISBN: 978-1475088069

Complementary Bibliography

Hall, Peter (1993), Innovation, Economics and Evolution: Theoretical Perspectives on Changing Technology in Economic Systems, New York: Harvester Wheatsheaf. Baumol, William J. (2002), The Free-Market Innovation Machine: Analysing the Growth Miracle of Capital
Baumol, William J. (2002), The Free-Market Innovation Machine: Analysing the Growth Miracle of Capitalism, Princeton, New Jersey: Princeton University Press
Nelson, R.R. (editor) (1993), National Innovation Systems: A Comparative Analysis, New York: Oxford University Press.
Nelson, R.R. e Winter, S. (1982), An Evolutionary Theory of Economic Change, Cambridge, M.A.: Harvard University Press
Pavitt, K. (1984), “Sectoral Patterns of Technical Change: Towards a Taxonomy and a Theory”, Research Policy, volume 13, pp. 343-373.
Pessoa, Argentino;R&D and economic growth: How strong is the link?," Economics Letters, vol. 107(2), pages 152-154, 2010
Argentino Pessoa e Mário Rui Silva; “Environment Based Innovation: Policy Questions”, Finisterra, XLIV, 88, pp. 53-78, 2009

Teaching methods and learning activities

Theorectical and practical lessons

keywords

Social sciences > Economics

Evaluation Type

Distributed evaluation without final exam

Assessment Components

Designation	Weight (%)
Participação presencial	0,00
Teste	100,00
Total:	100,00

Calculation formula of final grade

If distributed assessment:
There are 2 tests. The final mark is calculated as follows: 40% * TEST 1 + 60% * TEST 2.
Approval requires a minimum mark of 9.5 valores, and a mark of no less than 6 valores in each TEST.

If final exam:
Student is succeeded if he /she gets a grade equal or higher than 10 (0 to 20 scale)