Economics of Innovation
ECONOMICS OF INNOVATION I: INNOVATION DECISIONS
Uwe Cantner$* and Simone Vannuccini$
$Friedrich
Schiller University Jena & *University of Southern Denmark, Odense
[email protected],
[email protected]
1
(C) UC 2013
Economics of Innovation
Part I
Overview
Basics in the Economics of Innovation
Part II Incentive based approach 1. Optimal design of research and development projects 2. Non-Tournament models 3. Neo-Schumpeter Hypotheses
Part III Knowledge based approach 1. Rationality, bounded rationality and the theory of the firm 2. Innovation and knowledge races 3. Selective Competition
Part IV Entrepreneurial Decisions 1. Entrepreneurial intentions 2. Entrepreneurship and Social capital 3. Entrepreneurial Failure
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(C) UC 2013
Economics of Innovation
•
Course – –
•
2 take homes + final exam
Material – –
3
Simone Vannuccini Wednesday 12.00 – 14.00 (12.15 – 13.45) SR 208 • as announced by Simone Vannuccini
Examination –
•
Monday 10.00 – 12.00 (10.15 – 11.45) SR 306 Uwe Cantner, Simone Vannuccini
Exercises – –
•
Organisation of the course
Slides (ex-post or ex ante?) Papers to read (ex-ante)
(C) UC 2013
Economics of Innovation I
Economics of Innovation
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Chair of Microeconomics – – – –
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Economics of Innovation I: Innovation Decisions Economics of Innovation II: Industrial Dynamics and Evolution Economics of Innovation III: Economic Dynamics and Structural Change Economics of Innovation IV: Special Topics
Compulsory – – –
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Major: Innovation and Change
Michael Fritsch: Hans-Walter Lorenz: Uwe Cantner:
(C) UC 2013
Innovation Policy Growth and Business Cycles Economics of Innovation I: Innovation Decisions
Economics of Innovation I
Economics of Innovation
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Others – – – – – – – – – – – – – –
•
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Major: Innovation and Change
Economics of Innovation II: Industrial Dynamics and Evolution Economics of Innovation III: Economic Dynamics and Structural Change Economics of Innovation IV: Special Topics Complexity Theory Topics in Behavioral Economics Innovation Systems Advanced Studies in Entrepreneurship Quantitative Economics I Quantitative Economics III Topics in Economics History of Technology and Innovation History of World Economy Topics in Economic Theory and Policy I Topics in Economic Theory and Policy II
Two seminars
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Economics of Innovation I
Economics of Innovation
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Overview: Task and Fields I
Economics of Innovation –
comprises the economic analysis of • the generation,
invention
• the first application,
innovation
• the diffusion
diffusion/imitation
• and the impact –
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of new ideas, new combinations (Schumpeter 1912).
(C) UC 2013
Economics of Innovation I
Economics of Innovation
Overview: Task and Fields II
Invention
Innovation
Diffusion / Imitation
•Comparative growth (paths) •World income distribution •International trade structures and product life cycle •Technological (Un)Employment •Long Waves
Structural change 7
Macro dynamics (C) UC 2013
Economics of Innovation I
Economics of Innovation
Overview: Comparative Growth I
Tigers - GDP/capita comp. to US, Germany and Japan 35000
intern. currency
30000 25000 20000 15000 10000 5000 0 1950
8
1954
1958
1962
1966
1970
1974
1978
1982
1986
1990
1994
1998
USA
Germany
Japan
Korea
Hong Kong
Thailand
Taiwan
Singapore
Indonesia
China
(C) UC 2013
Economics of Innovation I
Economics of Innovation
Overview: Comparative Growth II
Latinamerikas - GDP/capita comp. to US, Germany and Japan 35000
intern. currency
30000 25000 20000 15000 10000 5000 0 1950
9
1954
1958
1962
1966
1970
1974
1978
1982
1986
1990
1994
1998
USA
Germany
Japan
Venezuela
Ecuador
Colombia
Chile
Brazil
Bolivia
Argentina
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Economics of Innovation I
Economics of Innovation
Overview: Comparative Growth III
African countries - GDP/capita comp. to US, Germany and Japan 5000 4500
intern. currency
4000 3500 3000 2500 2000 1500 1000 500 0 1950 USA
10
1954
1958
Germany
(C) UC 2013
1962
1966
Japan
1970 Zaire
1974
1978
1982
Uganda
Economics of Innovation I
1986
Togo
1990
1994
Nigeria
1998 Kenia
Economics of Innovation
Overview: Task and Fields II
Invention
Innovation
•Intersectoral structural change •Technology flows •Industry dynamics •Industry life cycle •Regional development
•Comparative growth (paths) •World income distribution •International trade structures and product life cycle •Technological (Un)Employment •Long Waves
Structural change 11
Diffusion / Imitation
Macro dynamics (C) UC 2013
Economics of Innovation I
Economics of Innovation
Overview: Intersectoral Structural Change
3 Sector Hypothesis: Germany 1850-2001
Source: Dietrich/Krüger (2007)
12
(C) UC 2013
Economics of Innovation I
Economics of Innovation
Overview: Technology Flow and Structural Change
Technology flow matrix based on R&D
S1 S2 S3 S4 S5 S6 S7 S8 S9 S10 S11 S12 S13 S14 S15 S16 S17 S18
S16 S11 S6 Technologie- S1 nehmer
S1
S2
S3
S4
S5
S6
S7
S8
S17 S18 S19 S15 S16 S13 S14 S12 S11 S9 S10
Versorgungssektor Bergbau Chemieindustrie Mineralölindustrie Kunststoff- und Gummiindustrie Steine, Erden, Glas, Keramik Gießereien, Ziehereien etc Eisen, Stahl, NE-Metalle Straßen-, Wasserfahrzeuge Maschinenbau Luft-und Raumfahrt Elektrotechnik EBM-Waren Feinmechanik, Optik Papier- und Druckgewerbe Holzbe- und -verarbeitung Leder- und Textilgewerbe Nahrungs- und Genußmittelindustrie S19 restliche Wirtschaftsabteilungen
Technologiegeber
Source: Cantner/Hanusch (1999)
13
(C) UC 2013
Economics of Innovation I
Economics of Innovation
Overview: Structural Change and Industry Life Cycle
140
Industry life cyle of the German Automobile Industry
0
20
40
60
80
100
120
number of firms entry exit
1890
1900
1910
1920
1930
year
14
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Economics of Innovation I
1940
Source: Cantner/Dreßler/Krüger (2006)
Economics of Innovation
Overview: Regional Development and Efficiency of Research I
