ECONOMICS OF INNOVATION, GROWTH THEORY AND ECONOMICS DEVELOPMENT-1

This course is designed to introduce students to the concept of economic growth, theories of innovation, and their interlinkages. The course covers both the standard mainstream economic theories of growth and innovation, as well as alternative approaches such as evolutionary economics and complexity economics. In addition, the course will explore the role of economic methodology in understanding growth and innovation.

Upon completing the course, students will be able to:
o Understand the concept of economic growth and the determinants of long-run economic growth;
o Critically evaluate the various theoretical frameworks explaining innovation and their relevance to economic growth;
o Understand the role of evolutionary economics and complexity economics in explaining the process of innovation and economic growth;
o Develop an understanding of the methodological issues involved in studying growth and innovation.

It is necessary for the student to know the basic elements of microeconomics.

Economic Methodology: assumptions, modeling, causal inference in growth and innovation
Introduction to Growth Theory: Solow Growth Model and extensions
Endogenous Growth Models and Schumpeterian Theory of Innovation
Theory of the firm: innovation strategies, R&D investment, market competition, patents
Technological Paradigms and Trajectories
Macroeconomics changes following recent disruptions
International trade and complexity

A useful basic reference that can be used to fill possible gaps is:
"The Economy: Economics for a Changing World". CORE Economics Education 2022
which is freely available online at this address: https://www.core-econ.org/

A reference partially covering the studied topics is:
"Industry Organization and Industrial Policy: Production and Innovation, Development and the Public Interest". Il Mulino, 2024.

Then, class-specific papers will be thoroughly explained and analyzed and the list includes the following publications (all accessible using the university credentials):
Amador, J., & Cabral, S. (2016). Global value chains: A survey of drivers and measures. Journal of Economic Surveys, 30(2), 278-301.
Antràs, P. (2020). De-globalisation? Global value chains in the post-COVID-19 age. National Bureau of Economic Research (w28115).
Audretsch, D. B. (2015). Joseph Schumpeter and John Kenneth Galbraith: two sides of the same coin?. Journal of Evolutionary Economics, 25, 197-214.
Balland, P. A., Broekel, T., Diodato, D., Giuliani, E., Hausmann, R., O'Clery, N., & Rigby, D. (2022). Reprint of “The new paradigm of economic complexity”. Research Policy, 51(8), 104568.
Dosi, G., & Nelson, R. R. (2010). Technical change and industrial dynamics as evolutionary processes. Handbook of the Economics of Innovation, 1, 51-127.
Fagerberg, J. (2007). A guide to Schumpeter. Confluence: Interdisciplinary Communications, 2008, 20-22.
Hausman, D. M. (1989). Economic methodology in a nutshell. Journal of Economic Perspectives, 3(2), 115-127.
Hidalgo, C. A. (2021). Economic complexity theory and applications. Nature Reviews Physics, 3(2), 92-113.
Hidalgo, C. A., & Hausmann, R. (2009). The building blocks of economic complexity. Proceedings of the national academy of sciences, 106(26), 10570-10575.
Keynes, J. M. (1936). The General Theory of Employment, Interest and Money. London: Macmillan.
Lakner, C., & Milanovic, B. (2015). Global income distribution from the fall of the Berlin Wall to the great recession. Revista de Economía Institucional, 17(32), 71-128.
Nuvolari, A., & Ricci, M. (2013). Economic Growth in England 1250-1850: Some New Estimates Using a Demand Side Approach. Rivista di storia economica, 29(1), 31-54.
Piketty, T., & Saez, E. (2014). Inequality in the long run. Science, 344(6186), 838-843.
Romer, P. M. (1986). Increasing Returns and Long-Run Growth. Journal of Political Economy, 94(5), 1002-1037.
Solow, R. M. (1956). A Contribution to the Theory of Economic Growth. Quarterly Journal of Economics, 70(1), 65-94.

The final evaluation will consist of a written exam with both multiple choice and open questions. The obtained grade will be integrated by the possible voluntary participation to specific laboratories that will be explained in class.

written

Evaluation grid:

28-30L: excellent command of the topics covered in lectures and textbooks; outstanding ability to organize and prioritize information; appropriate use of the technical terminology of the discipline.

26-27: good knowledge of the topics covered in lectures and textbooks; good ability to organize and present information; substantially correct use of the technical terminology of the discipline.

24-25: fair knowledge of the topics covered in lectures and textbooks; fair ability to organize information; use of technical terminology not always correct.

22-23: sometimes superficial and/or incomplete knowledge of the topics covered in lectures and textbooks; presentation not always clear and/or lacking in technical terminology of the discipline.

18-21: sometimes superficial and/or incomplete knowledge of the topics covered in lectures and textbooks, but still sufficient; unclear and/or deficient presentation, with limited use of technical terminology of the discipline.

Lectures, readings and groupworks on the program topics.

The course is carried out in collaboration with the extended partnership GRINS - Growing Resilient, INclusive and Sustainable, code PE0000018, CUP H73C22000930001, public notice no. 341/2022 of the National Recovery and Resilience Plan ("NRRP"), Mission 4 - Component 2 - Investment 1.3, funded by the European Union - NextGenerationEU.
As part of the course, meetings with companies’ testimonials involved in the project may be offered, focusing on the development of practical knowledge in the subject matter, as well as the results of the project itself.
This course covers topics related to Spoke 7 Territorial sustainability - WP3.