J7SC 2BA03 - Economics of Innovation

This course aims at understanding the nature, the role and the effects of innovation on the individual, the firm and society as a whole.

We will start by defining and measuring innovation, describing its process and profiling the innovators. We will review the classical and Schumpeterian theories of innovation and creative destruction, and scrutinize the macro- and microeconomic impacts of innovation and creative destruction. This will allow us to revisit the great debates over innovation and growth in developed and developing countries. Last, we will study the policy implications of innovation, notably the regulation issue with a focus on taxation and competition policy, and the financing issue. We will rethink the role of the state and civil society, analyzing how they can stimulate innovation and thereby increase the wealth of nations. This will lead us to a more global reflection on the future of capitalism.

None

12 weekly sessions of 2 hours each

• Two (short) written tests: 50 % of the final mark (25 % each).
• Participation in two oral “debating” in groups of 4 (with home preparation, the list of topics will be handed out at the beginning of the semester): 50 % of the final mark (25 % each).

Preparing the lectures by reading the requested references.