Empirical Innovation Economics

Abstract

The course focuses on important factors that drive the innovation performance of firms, like innovation capabilities, the use of digital technologies, environmental and innovation policy and it shows how innovation activities relate to firm performance and to the technological dynamic of industries. We also discuss the implications of the findings for effective economic policy-making.

Objective

The course provides students with the basic skills to understand and assess empirically the technological activities of firms and the technological dynamics of industries. In addition, the aim is to promote the understanding of the essential criteria for innovation policy-making. Personal skills are also addressed during the course. In particular, there is the possibility to improve presentation skills, the ability to develop arguments for the positions of political representatives, policy-makers, pressure groups, or NGOs in connection with innovation policy-making.

Content

The course consists of two parts. Part I provides an introduction into important topics in the field of the economics of innovation. Part II consists of empirical exercises based on various data sets, e.g., the KOF Innovation data, data about the digitization of firms, or patent data. In part I we will learn about ...a) market conditions that encourage firms to invest in R&D (Research and Development) and develop new products and processes. ...b) the role of universities for the technological activities of a firm (technology transfer). ...c) how technologies diffuse among firms. ...d) how the R&D activities of firms are affected by economic crises and how firms finance their R&D activities. ...e) how we can measure the returns to R&D activities. ...f) how environmental policies and innovation policies affect the technological activities of a firm. In part II we will use the KOF Innovation Survey data, patent data, data on digitization of firms, or other longitudinal data sources, to investigate empirically the technological activities of firms in relation to the topics introduced in part I.

Resources