INDUSTRIAL ECONOMICS

The course is designed to provide students with an introduction to Industrial Economics and Industrial Organization. They will acquire knowledge on the theory of the firm, market structure, market dynamics; they will develop abilities to perform case studies and sectoral analysis. The discipline of Industrial Economics and Industrial Organization provides the analytical framework  to understand the behaviour of firms operating in competitive markets, their innovative strategies; market concentration, antitrust and competition policy; economic regulation; industrial policy and innovation policy .

Knowledge and understanding: The course aim is to provide students with the tools to understand the behaviors of firms, sectors and markets. Students will acquire skills to understand the analytical framework for strategic planning of firms operating in competitive markets and to understand micro economics topics such as market concentration, antitrust and competition policy; economic regulation. Applying knowledge and understanding: At the end of the course, students will be able to understand the foundations of microeconomics underpinning alternative theories of the firm; to connect different theories and apply them to industrial cases and sectoral analyses. Critical thinking: Students will be able to analyze and autonomously assess firms behaviors and the specifics of the industrial systems Communication skills: Students will acquire the communication skills that allow to discuss the theories of the firms and industrial economics. Such skills and the ability to use technical and economic jargon will be assessed through participation in class, discussion of cases, case study analyses and exams. Learning skills: Students will acquire foundational knowledge in micro economics and management that allow them to deepen their knowledge in advanced micro economic courses.

This course has no formal prerequisites, but solid background in microeconomics is highly desirable.

Structure, Behaviour and Performance Industry structure Industrial concentration. Measurement issues, causes and consequences Entry barriers Differentiation Diversification Vertical Integration Economies of scale Technological innovation Multinationals firms and the global value chains Italian industry, main features and challenges Industrial policy in Italy Digitalization and Industry 4.0 Industrial digital and green transition

John Lipczynski, John O. Wilson, John Goddard, Economia industriale. Pearson, 2016. Additional readings Barba Navaretti – Venables (2004), Le multinazionali nell’economia mondiale, Il Mulino, per i capitoli trattati a lezione Fagerberg-Mowery-Nelson (2007), Innovazione, Imprese, Industrie, Economie, Carocci editore, per i capitoli trattati a lezione Malerba, Economia dell’innovazione (2000), Carocci editore, per i capitoli trattati a lezione Frederick Guy (2009) The Global Environment of Business Oxford University Press The teaching material, all the slides and references to the lectures will be available on the platform luiss-learn.

Assessed Group Presentations

Traditional Lectures, Guest Lectures, Group presentations

The exam includes a written test with open-ended questions (80% of the final grade) and group presentations of one or more case studies on topics agreed with the teacher (20% of the final grade). Group presentation (20% of the final grade): Students will have to organize themselves in groups of a maximum of 7/8 participants and work together to present a case study on one of the topics covered in class. They will have to send the slides in advance and prepare the oral presentation, which will last no more than twenty minutes. The group member in charge of the oral presentation will be drawn at the time of presentation, but the work will be assessed for the whole group. The group presentations will be held over the second half of the course. Students are invited to comment and discuss the work presented by colleagues. The teachers will also evaluate the presentation on the basis of oral questions to all members of the group. The presentations will be evaluated on the basis of the case chosen, the application of the theories and concepts addressed in class on the practical case, the detail and completeness of the discussion of the case and the implications for the economy and industrial policy. The vote of the presentations cannot be refused, and if insufficient it will contribute to the final vote for 20%. Oral exam (80% of the final grade) The written exam consists of open-ended questions. Students will be assessed on the basis of: knowledge of the main theories and models indicated in the program (40%), ability to connect the different topics covered (30%), ability to apply the topics studied to examples and cases (20%), ability to use technical-economic terminology appropriately (10%) Failure to achieve a score of 18/30 leads to failure to pass the exam. The correct answer to all open-ended questions, accompanied, where required, by a relevant application of the concepts to the cases and examples proposed, by the development of correct links between the various topics studied and by the use of the appropriate terminology, entails the attribution of a score of 30/30 with the attribution of honors. The sum of the evaluation obtained in the written test and in the group presentation involves the attribution of a score of 30/30 with the attribution of honors. Failure to achieve a score of 18/30 involves, on the contrary, failure to pass the exam. In case of at least sufficient evaluation, the student can directly record the evaluation obtained.