Learning goals

The course fits into the overall program curriculum in Management Engineering by contributing to achieve its general learning goals. Specifically, the course develops the following learning objectives: “understanding context, functions, processes in a business and industrial environment and the impact of these factors on business performance”. To achieve its aim the course combines frontal and interacting lectures (i.e., flipped classrooms, see below).

Learning outcomes

By attending the course, students learn to

1. Understand the economic rationales that drive firms’ innovation decisions, thus being able to make sense of firms’ innovation investments and, ultimately, of the impact of these investments on firms’ performances [Assessed through the written exam].
2. Advise firms on how to orient their innovation investments to maximize efficiency and the impact on performances [Assessed through the written exam].
3. Understand the economic rationales that guide policymakers (and institutions in general) to support innovation, thus being able to make sense of innovation policies and, ultimately, of their impact on the innovation performances of firms, industries, and economic systems [Assessed through the written exam].
4. Advise policymakers on how to design innovation policies to effectively stimulate innovation [Assessed through the written exam].
5. Analyse case studies (revolving around points 1-4), which describe real-world situations, by applying theoretical and empirical knowledge on economics of innovation [Assessed through the flipped classrooms].
6. Perform the analysis sub 5 in teams and present their work during structured discussion sessions [Assessed through the flipped classrooms].

Topics

Nowadays, new technologies emerge one after the other and technological knowledge advances at full speed. In this context, everybody agrees that innovation is the main leverage through which firms can gain a sustainable competitive advantage and achieve superior performance. Accordingly, understanding the economic antecedents and consequences behind firms’ innovation decisions, and being able to maximize the outcomes these decisions is a key capability for succeeding on the labour market. Likewise, innovation is the main engine of economic growth and policymakers (and institutions in general) actively engage in supporting it. Hence, it is of paramount importance to develop awareness on the economic rationales behind this support so as to take advantage of the associated policy schemes. Moving from these premises, this course illustrates conceptual foundations and real-world evidence about

• The role of innovation and new technologies in modern economic systems (module 1).
• The drivers of the adoption of new technologies, with a focus on uncertainty and limited rationality as barriers to this adoption (module 2).
• The relation between firms’ innovation and competition, with a focus on appropriability regimes, market structures, and market imperfections (module 3).
• The antecedents and economics consequences of inter-firm agreements for innovation, with a focus on alliances and acquisitions (module 4).
• The role of institutions in innovation, with a focus on public support to innovation, policy schemes for stimulating innovation, and relations between informal institutions and innovation (module 5).

Course materials

The course does not base on a unique textbook. Course materials consist of a collection of slides, case studies, scientific papers, book chapters, videos, etcetera, which the teachers make available through the EINT page on WeBeep.

Background knowledge

Students should master basic concepts in theories of the firm, competitive structures, and business strategies.

Evaluation

The final grade results by summing, which students score in the

• Classroom exam: a written exam, which students take in one of the calls scheduled by the school. It lasts for 80 minutes and consists of 10 multiple-choice questions plus a structured question (g., short open questions on mini-cases and/or key concepts, exercises). The written exam revolves around topics studied in class. It grants 26 points at maximum.
• Assessment of flipped classrooms (teamwork and presentation) on case study analyses. It grants 6 points at maximum (2 points at maximum for each flipped classroom). Of note, not attending students should provide three written reports (one of each flipped classrooms).