5 credits
30.0 h
Q1
Teacher(s)
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:
At the end of this course, the student will be able to:
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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
- 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.
- We compare various public policy measures that are designed to alleviate this problem of appropriability.
- We assess the effect of market structure on the incentives for R&D.
- We study how patent protection should optimally be designed. In particular, we address the questions of the optimal length and breadth of patents.
- 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
Teaching methods
The theoretical material is presented during the lectures. Students are asked to work in groups and individually in order to apply the theoretical framework to specific case studies and/or to topical issues.
In-class activities
In-class activities
- Lectures
- Group discussions
- Testimonies by external experts
- Readings to prepare the lectures
- Assignments
Evaluation methods
The final grade in this course is based on grades in individual coursework (40%), group coursework (40%) and final exam (20%).
- Individual coursework. The individual coursework consists of written answers to quiz questions about the cases discussed in class. Each quiz will consist of a single question, asking for a justified opinion. Your response to each quiz should be 300-500 words long. All quizzes are required to be completed, and the mark will consist of quiz answers relating to two cases, to be selected at random at the end of the course. Please bear in mind that – in addition to being marked – the quizzes have the purpose to prepare you for the class discussion.
- Group coursework. The task is to devise and develop a business case for an existing business. Each team is expected to submit a written report (max 6,000 words, excluding references and appendix) that provides a compelling argument for a company to invest in and launch a new product or service. Imagine that you work for this company, and that the recipient of the business case is a senior manager from whom you need support to go ahead. Propose a new product or service that you believe this company should introduce. This may be because the company is particularly well placed to introduce a specific innovation, or because it is threatened by competition and will suffer if no action is taken. Use all information that you can find on the company to build your case. This information may include annual reports, regulatory information issued by the company, press information (FT, Economist, etc.) and any other information source that you can identify, such as personal contacts. All members of the team will receive the same mark, regardless of individual contributions.
- Final exam. The final exam is a 1-hour, close-book, written exam covering the entirety of the course. The focus is on economic intuition and interpretation of cases, and not on mathematical reasoning. The exam will be organized in the two regular exam sessions (January and August).
- Important note. The marks for the individual coursework are set once and for all (this part of the assessment cannot be retaken). However, students have the possibility to retake the final exam in August and, if the mark of the group coursework is below 10/20, to replace it with an individual coursework (to be handed in June or in August).
Other information
Internationalisation
- international case study
Online resources
See the Moodle web site of the course.
Bibliography
References : Provided during the class
Lecture notes and Slides provided through Moodle
Lecture notes and Slides provided through Moodle
Faculty or entity
CLSM
