Economics of Innovation (in English)

llsms2041  2017-2018  Louvain-la-Neuve

Economics of Innovation (in English)
5 credits
30.0 h
Q1
Teacher(s)
Artige Lionel (compensates Belleflamme Paul); Belleflamme Paul;
Language
English
Prerequisites
Intermediate Micro-Economics and Introductory Industrial Organization
Main themes
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.
Aims

At the end of this learning unit, the student is able to :

1

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).

 

 
 

The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.
Content
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.
Content
  • Information and appropriability
  • Market structure and incentives for R&D
  • Patents and efficiency
  • Intellectual property in the digital economy


 
Teaching methods
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
Evaluation methods
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
Other information
Internationalisation
  • international case study
Bibliography
References : Provided during the class
Lecture notes and Slides provided through Moodle
Faculty or entity
CLSM


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

Title of the programme
Sigle
Credits
Prerequisites
Aims
Master [120] in Business Engineering
INGE2M
5
Master [120] in Economics: General
ECON2M
5
Master [60] in Economics : General
ECON2M1
5
Master [120] in Business Engineering
INGM2M
5