The Economics of Innovation

It is widely believed that innovation is a key driver behind economic growth in developed economies, and even more so in Western Europe, Japan and the US. All three economic areas are short of natural resources and their most important good is human capital, e.g. a well educated labor force that creates innovations which can be sold on world markets.

This course discusses the economics behind innovation. In particular issues related with the incentives to innovate and the business strategies associated with innovation.

This course hence endows students with the elementary skills necessary to understand the driving forces behind innovation at the firm level which enables them to judge and rate a firms' innovation policy.

This course is aimed at graduate students of management and economics who plan to work with high technology firms or institutions that finances innovative firms such as banking, private equity or Venture Capital.

The main text of this course is Suzanne Scotchmer's textbook "Innovation and Incentives". The book is supplemented by academic papers from both Economics and Management as well as by case studies and articles from the business press. For more information see the reading list.

* Tutorials start on February 29, 2012.

This class gives 6 ECTS points. Students from Business Administration and Management and Economics can use the credits for the following modules:

• MA: Wahlpflichtbereich BWL 5
• MA: Pflichtmodule ME

Final written exam is scheduled for June 19, 2012 from 10:15 to 12:00 in room KOL-F-121. It is a closed book exam.