Economics of Innovation

llsms2041  2017-2018  Louvain-la-Neuve

Economics of Innovation
5 crédits
30.0 h
Artige Lionel (supplée Belleflamme Paul); Belleflamme Paul;
Micro-économie intermédiaire et introduction à l'organisation industrielle
Thèmes abordés
The course aims at analysing the mechanisms and institutions governing the production, use and diffusion of information and knowledge. It also aims at developing a rigorous economic analysis of a large set of issues surrounding intellectual property, R&D and innovation. In this field, the economic approach appears as fundamental as it focuses on markets, incentives and strategic interaction.

A la fin de cette unité d’enseignement, l’étudiant est capable de :


Having regard to the LO of the programme, this activity contributes to the development and acquisition of the following LO:

  • 1. Corporate citizenship
  • 1.1. ¿Demonstrate independent reasoning, look critically  ¿
  • 2. Knowledge and reasoning
  • 2.1. Master  the core knowledge  of each  area  of management.
  • 2.2. Master  highly specific  knowledge   ¿
  • 2.3. Articulate the acquired knowledge  from different areas
  • 2.4. Activate and apply the acquired knowledge  ¿
  • 3. A scientific and systematif approach
  • 3.1. Conduct a clear,  structured, analytical  reasoning ¿
  • 3.2. Collect, select  and  analyze  relevant  information   ¿
  • 3.3.Consider  problems using  a  systemic and  holistic  approach  ¿
  • 3.4. Perceptively  synthesize  ¿demonstrating a certain  conceptual distance ¿
  • 3.5.Produce, through  analysis  and  diagnosis, implementable solutions¿
  • 5. Work effectively in an international and multicultural environment
  • 5.2.Position ... the functioning  of an organization, in its ...socio-economic dimensions¿
  • 6. Teamwork and leadership
  • 6.1. Work in a team...
  • 8. Communication and interpersonal skills
  • 8.1. Express a clear and structured message¿
  • 8.2. Interact  and  discuss effectively  ¿
  • 9. Personal and professional development
  • 9.1. Independent self-starter  ¿
  • 9.4. Quick study, lifelong learner ¿

At the end of this course, the student will be able to:

  1. understand what sets innovation markets apart from other markets.
  2. understand why markets often fail when it comes to produce information and knowledge.
  3. understand why and how governments should intervene in such markets.
  4. use the economic analysis in order to improve their understanding of a number of topical issues (e.g., the impact of patents and generic drugs on the fight against diseases like HIV/AIDS or malaria, software patents, piracy of digital goods, etc).




La contribution de cette UE au développement et à la maîtrise des compétences et acquis du (des) programme(s) est accessible à la fin de cette fiche, dans la partie « Programmes/formations proposant cette unité d’enseignement (UE) ».
Summary, content and methods
  1.  We introduce the main concepts and explain why activities generating information and knowledge are marred by three sources of market failures, which contribute to create a generic problem of appropriability.
  2. We compare various public policy measures that are designed to alleviate this problem of appropriability.
  3. We assess the effect of market structure on the incentives for R&D.
  4. We study how patent protection should optimally be designed. In particular, we address the questions of the optimal length and breadth of patents.
  5. We apply the previous general analyses to the specificities of the digital economy. Two topical issues are addressed: the piracy of digital products and the development of open-source software.
  • Information and appropriability
  • Market structure and incentives for R&D
  • Patents and efficiency
  • Intellectual property in the digital economy

Méthodes d'enseignement
The theoretical material is presented during the lectures. Students are asked to work in groups in order to apply the theoretical framework to specific case studies and/or to topical issues.
In-class activities
  • Lectures
At home activities
  • Readings to prepare the lecture
  • Paper work
  • Students presentation
Modes d'évaluation
des acquis des étudiants
Continuous evaluation
  • Date: At each course
  • Type of evaluation: Course participation
  • Comments:
Evaluation week
  • Oral: No
  • Written: No
  • Unavailability or comments: No
Examination session
  • Oral: Yes (in French and in English)
  • Written: No
  • Unavailability or comments: No
Autres infos
  • international case study
References : Provided during the class
Lecture notes and Slides provided through Moodle
Faculté ou entité
en charge

Programmes / formations proposant cette unité d'enseignement (UE)

Intitulé du programme
Master [120] en ingénieur de gestion

Master [120] en sciences économiques, orientation générale

Master [60] en sciences économiques, orientation générale

Master [120] en ingénieur de gestion