Economics of Innovation

Philipp Koellinger

 

 

 

 

Extended syllabus for Economics of Innovation

By Philipp Koellinger, Erasmus School of Economics, Rotterdam, The Netherlands.

Course for MA students.

 

1. Introduction

2. Innovation and economic growth

3. Incentives to innovate and market failure

4. Spillovers and appropriability
5. Market structure and innovation
6. Diffusion of innovations
7. Strategic management of innovations
8. Labor market effects of innovations




1. Introduction

 

Baumol, W. The Free Market Innovation Machine – Analyzing the Growth Miracle of Capitalism, 2002, Princeton University Press, ch. 1.

 

Fagerberg, J. “Innovation – A guide to the literature.” In: Fagerberg, J., Mowery, D. and Nelson, R. (Eds). The Oxford Handbook of Innovation. 2005, Oxford University Press, ch. 1, 4-9.

 

Griliches, Z. “Patent Statistics as Economic Indicators: A Survey.” Journal of Economic Literature, 1990, 28(4), 1661-1707.

 

Kuznets, S. “Problems of Definition and Measurement”, In The Rate and Direction of Inventive Activity, 1962, pp. 19-63.

 

Mansfield, E. "Academic Research Underlying Industrial Innovations - Sources, Characteristics and Financing." Review of Economics and Statistics, 1995, 77(1), pp. 55-62.

 

Schumpeter, J. The Theory of Economic Development. 1934, Cambridge, MA: Harvard University Press, ch. 2, p. 57-94.

 

Schumpeter, J. Capitalism, Socialism and Democracy. 1942, New York: Harper, ch. 7, 81-86.

 

Smith, K. “Measuring innovation.” In: Fagerberg, J., Mowery, D. and Nelson, R. (Eds). The Oxford Handbook of Innovation. 2005, Oxford University Press, ch. 6, 148-177.

 

 



 

2. Innovation and economic growth

 

Aghion, P. and Howitt, P. "A Model of Growth through Creative Destruction." Econometrica, 1992, 60(2), pp. 323-51.


Alexopoulos, M. “Read All about It!!! What Happens Following a Technology Shock?” American Economic Review, 2011, 101(June), pp. 1144-1179.

Ashraf, Q. and Galor, O. “Dynamics and Stagnation in the Malthusian Epoch.” American Economic Review, 2011, 101(August), pp. 2003-2041

 

Bresnahan, T. F. and Trajtenberg, M. "General-Purpose Technologies - Engines of Growth." Journal of Econometrics, 1995, 65(1), pp. 83-108.

 

Fare, R.; Grosskopf, S.; Norris, M. and Zhang, Z. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries." American Economic Review, 1994, 84(1), pp. 66-83.

 

Grossman, G. M. and Helpman, E. "Endogenous Innovation in the Theory of Growth." Journal of Economic Perspectives, 1994, 8(1), pp. 23-44.

 

Helpman, E. "Innovation, Imitation, and Intellectual Property-Rights." Econometrica, 1993, 61(6), pp. 1247-80.

 

Jones, C. I. "R-and-D-Based Models of Economic-Growth." Journal of Political Economy, 1995a, 103(4), pp. 759-84.

 

____. "Time-Series Tests of Endogenous Growth-Models." Quarterly Journal of Economics, 1995b, 110(2), pp. 495-525.

 

Kremer, M. "Population-Growth and Technological-Change - One Million Bc to 1990." Quarterly Journal of Economics, 1993, 108(3), pp. 681-716.

 

Romer, P. M. "Endogenous Technological-Change." Journal of Political Economy, 1990, 98(5), pp. S71-S102.

Growth

 

____. "The Origins of Endogenous Growth." Journal of Economic Perspectives, 1994, 8(1), pp. 3-22.

Growth




 

3. Incentives to innovate and market failure

 

Arrow, K. “Economic welfare and the allocation of resources for invention.” In R. Nelson (Ed): The Rate and Direction of Inventive Activity, 1962, Princeton University Press, Princeton.

 

Gilbert, R. and Shapiro, C. "Optimal Patent Length and Breadth." Rand Journal of Economics, 1990, 21(1), pp. 106-12.

 

Machlup, F. and Penrose, E. “The Patent Controversy in the Nineteenth Century.” Journal of Economic History, 1950, 10(1), 1-29.

 

Trajtenberg, M. "A Penny for Your Quotes - Patent Citations and the Value of Innovations." Rand Journal of Economics, 1990, 21(1), pp. 172-87.

 

Klemperer, P. “How Broad Should the Scope of Patent Protection Be.” Rand Journal of Economics, 1990, 21(1), pp. 113-130.

 

Lerner, J. “150 Years of Patent Protection.” American Economic Review, 2002, 92(2), pp. 221-225.


 


4. Spillovers and appropriability

  

Audretsch, D. B. and Feldman, M. P. "R&D Spillovers and the Geography of Innovation and Production." American Economic Review, 1996, 86(3), pp. 630-40.

 

Coe, D. T. and Helpman, E. "International R-and-D Spillovers." European Economic Review, 1995, 39(5), pp. 859-87.

 

Coe, D. T.; Helpman, E. and Hoffmaister, A. W. "North-South R&D Spillovers." Economic Journal, 1997, 107(440), pp. 134-49.

 

Cohen, W. M. and Levinthal, D. A. "Innovation and Learning - the 2 Faces of R-and-D." Economic Journal, 1989, 99(397), pp. 569-96.

 

Daspremont, C. and Jacquemin, A. "Cooperative and Noncooperative R-and-D in Duopoly with Spillovers." American Economic Review, 1988, 78(5), pp. 1133-37.

 

Feldman, M. P. and Audretsch, D. B. "Innovation in Cities: Science-Based Diversity, Specialization and Localized Competition." European Economic Review, 1999, 43(2), pp. 409-29.

 

Gertler, M. S. "Being There - Proximity, Organization, and Culture in the Development and Adoption of Advanced Manufacturing Technologies." Economic Geography, 1995, 71(1), pp. 1-26.

 

Hall, B. H. and Ziedonis, R. H. "The Patent Paradox Revisited: An Empirical Study of Patenting in the US Semiconductor Industry, 1979-1995." Rand Journal of Economics, 2001, 32(1), pp. 101-28.

 

Jaffe, A. B.; Trajtenberg, M. and Henderson, R. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations." Quarterly Journal of Economics, 1993, 108(3), pp. 577-98.

 

Scotchmer, S. "Standing on the Shoulders of Giants - Cumulative Research and the Patent-Law." Journal of Economic Perspectives, 1991, 5(1), pp. 29-41.

 

Suzumura, K. "Cooperative and Noncooperative Research-and-Development in an Oligopoly with Spillovers." American Economic Review, 1992, 82(5), pp. 1307-20.





5. Market structure and innovation

 

Acs, Z. J. and Audretsch, D. B. "Innovation in Large and Small Firms - an Empirical-Analysis." American Economic Review, 1988, 78(4), pp. 678-90.

 

Aghion, P.; Bloom, N.; Blundell, R.; Griffith, R. and Howitt, P. “Competition and Innovation: An Inverted U-Relationship.” Quarterly Journal of Economics, 2005, 120(2), pp. 701-728.

 

Cohen, W. and Klepper, S. “The anatomy of industry R&D intensity distributions.” American Economic Review, 1992, 82(4), pp. 773-799.

 

Cohen, W. and Levin, R. “Empirical studies of innovation and market structure.” In. R. Schmalensee and R. Willig (Eds.), Handbook of Industrial Organization – Volume 2, 1989,  Amsterdam et al.: Elsevier, pp. 1060-1107.

 

Kamien, M. I.; Muller, E. and Zang, I. "Research Joint Ventures and Research-and-Development Cartels." American Economic Review, 1992, 82(5), pp. 1293-306.

 

Kamien, M.I. and Schwartz, N.L. Market Structure and Innovation. 1982, Cambridge University Press.

 

Klepper, S. "Entry, Exit, Growth, and Innovation over the Product Life Cycle." American Economic Review, 1996, 86(3), pp. 562-83.

 

Nickell, S. J. "Competition and Corporate Performance." Journal of Political Economy, 1996, 104(4), pp. 724-46.

 

 



 

6. Diffusion of innovations

 

Reinganum, J. “On the Diffusion of New Technology: A Game Theoretic Approach.” Review of Economic Studies, 1981, 48, pp. 395-405.

 

Goetz, G. “Monopolistic Competition and the Diffusion of New Technology.” Rand Journal of Economics, 1999, 30(4), pp. 679-693.

 

Griliches, Z. “Hybrid Corn: An Exploration in the Economics of Technological Change.” Econometrica, 1957, 48, pp. 501-522.

 

Koellinger, P. and Schade, C. "Endogenous Acceleration of Technology Adoption - Evidence from the Diffusion of E-business in Europe." ERIM Discussion Paper, 2008, 2008-013-ORG.

 

Stoneman, P. The Economics of Technological Diffusion. 2002, Blackwell Publishers, Oxford. Chapter 3, pp. 29-54.

 

Stoneman, P. and Kwon, M.J. “Technology Adoption and Firm Profitability.” Economic Journal, 1996, 106(437), pp. 952-962.





7. Strategic management of innovations

 

Aghion, P. and Tirole, J. "The Management of Innovation." Quarterly Journal of Economics, 1994, 109(4), pp. 1185-209.

 

Arthur, B. “Competing Technologies, Increasing Returns, and Lock-In by Historical Events.” Economic Journal, 1989, 99(394), pp. 116-131.

 

Besen, S. M. and Farrell, J. "Choosing How to Compete - Strategies and Tactics in Standardization." Journal of Economic Perspectives, 1994, 8(2), pp. 117-31.

 

Henderson, R. "Underinvestment and Incompetence as Responses to Radical Innovation - Evidence from the Photolithographic Alignment Equipment Industry." Rand Journal of Economics, 1993, 24(2), pp. 248-70.

 

Henderson, R. and Cockburn, I. "Scale, Scope, and Spillovers: The Determinants of Research Productivity in Drug Discovery." Rand Journal of Economics, 1996, 27(1), pp. 32-59.

 

Milgrom, P. and Roberts, J. "Complementarities and Fit - Strategy, Structure, and Organizational-Change in Manufacturing." Journal of Accounting & Economics, 1995, 19(2-3), pp. 179-208.

 

Katz, M. and Shapiro, C. “Technology Adoption in the Presence of Network Externalities.” Journal of Political Economy, 1986, 94, pp. 822-841.

 

Katz, M. L. and Shapiro, C. "Systems Competition and Network Effects." Journal of Economic Perspectives, 1994, 8(2), pp. 93-115.

 




8. Labor market effects of innovations

 

Acemoglu, D. "Technical Change, Inequality, and the Labor Market." Journal of Economic Literature, 2002, 40(1), pp. 7-72.

 

____. "Why Do New Technologies Complement Skills? Directed Technical Change and Wage Inequality." Quarterly Journal of Economics, 1998, 113(4), pp. 1055-89.

 

Autor, D. H.; Katz, L. F. and Krueger, A. B. "Computing Inequality: Have Computers Changed the Labor Market?" Quarterly Journal of Economics, 1998, 113(4), pp. 1169-213.

 

Berman, E.; Bound, J. and Machin, S. "Implications of Skill-Biased Technological Change: International Evidence." Quarterly Journal of Economics, 1998, 113(4), pp. 1245-79.

Black, S. and Spitz-Oener, A. “Explaining Women’s Success: Technological Change and the Skill Content of Women’s Work.” Review of Economics and Statistics, 2010, 92(1), pp. 187-194.

 

Bound, J. and Johnson, G. "Changes in the Structure of Wages in the 1980s - an Evaluation of Alternative Explanations." American Economic Review, 1992, 82(3), pp. 371-92.

 

Bresnahan, T. F.; Brynjolfsson, E. and Hitt, L. M. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence." Quarterly Journal of Economics, 2002, 117(1), pp. 339-76.

 

Machin, S. and Van Reenen, J. "Technology and Changes in Skill Structure: Evidence from Seven Oecd Countries." Quarterly Journal of Economics, 1998, 113(4), pp. 1215-44.