ECONOMICS OF INNOVATION, ENVIRONMENT AND SOCIETY

Semester I During the first semester this class will introduce advanced management students to selected contributions in economics of innovation and dynamics of industrial markets. Seminal papers and chapters from an Italian textbook will be presented and discussed during classes. Semester II The main objective of this part of the course in the second semester is to enable students to understand and analyze the basic concepts and mechanisms between the socio-economic system and the natural environment, as well as the implications and challenges for society regarding sustainable growth. The most relevant topics will be presented using Italian textbooks and English papers, explained in class to be easily accessible to students, even in English.

Semester I Basic principles of Microeconomics and Industrial Economics and Statistics are required. In more detail, Micro- and Industrial Economics: i) consumer and firm theory; ii) competition and efficiency; iii) monopoly and regulation; iv) oligopoly competition; v) collusion; vi) market structure. Textbook Cabral L. (2017) Introduction to Industrial Organization, MIT Press Statistics: i) sample and population; ii) variables grouped data and histograms; iii) measures of central tendency; iv) measures of dispersion; v) correlation. Textbook Newbold P., Carlson, W.L., Thorne, B., Statistics, Chapter 2.

Semester I Knowledge and Understanding: At the end of the course students will be able: - to understand the main relationships between the physical environment and the economy; - to understand the economics of technical change, labour markets and inequality. - to understand the diffusion of innovation and geography. 2) Applying knowledge and understanding: The student will be able: - to perform empirical analyses on the taxonomy of innovation in different industries; - to analyse the innovation activities across industries by tacking in account the propensity to patent; - to analyse the impact of automation technology on employment. These goals will be achieved by means of class exercises and work group evaluation. 3) Making judgements: We expect students to be able to make judgements upon the validity and effectiveness of the innovation policies. 4) Communications Skills Through classes exercises and work group presentations the students will be able to communicate their ideas, proposals, analysis and critical reasoning. 5) Learning skills The complementarity between the theoretical knowledge and the know-how students accumulate during the class exercises and work group allow them to acquire those dynamic capabilities useful for their career. Semester II Knowledge and Understanding By the end of the course, students will be able to: Understand the main basic concepts related to environmental "goods" and associated market failures Understand the concept of sustainability and non-market value; Understand the dynamics between technology, environmental sustainability, business performance, and the labor market; Understand policy tools to mitigate local (pollution) and global (climate change) externalities through emission mitigation and adaptation of the socio-economic system. Ability to Apply Knowledge and Understanding By the end of the course, students will be able to: Empirically analyze the relationship between growth, environmental performance, and companies' green innovative capacity through patent analysis; Set up a cost-benefit analysis that includes non-market environmental elements. Assessment of these objectives will be through evaluating classroom exercises and group work. Judgment Autonomy Students will develop critical awareness to make value judgments on the dynamics between the natural environment, production, and consumption of goods, as well as the role and effectiveness of environmental policies. Communication Skills. Through exercises and oral presentations in group work, students will acquire the ability to synthesize and the communication skills necessary to speak competently in public about the topics covered in the course. Learning Ability The combination of theoretical knowledge and applied empirical analysis tools will enable students to acquire a work method that is as objective as possible and oriented towards evidence from analyzed data.

Semester I This part of the course deals with innovation, dynamics and evolution of different industries. After clarifying some basic concepts about innovation, the most relevant schools of thought on the matter will be considered. A specific section will be dedicated to how measuring innovation. Patents are the main innovative outputs discussed into a specific section of this module. Afterwards, we will deal with dominant theories concerning innovation and industrial dynamics at sector and firm level. Eventually, the most important scientific approaches addressing the impact of technological change on employment will be analysed. Semester II In the second part, the course introduces students to the basic concepts of environmental economics: market failures, public goods, and local and global externalities. It provides an overview of non-market valuation methodologies and cost-benefit analysis. The course then addresses the main public intervention approaches to reducing externalities (command-and-control and market-based), offering examples of successful cases (local pollution control policies, Montreal Protocol). It also discusses welfare implications, particularly the unequal distribution of environmental and regulatory impacts (environmental justice). Finally, the course introduces the role of technology and innovation processes, illustrating the theories of Porter and van der Linde, emission control policies (ETS), and the economic (pollution haven hypothesis) and environmental (carbon leakage) consequences of offshoring in carbon-intensive sectors. The course concludes by discussing some empirical evidence on sustainable growth dynamics (environmental Kuznets curve).

Semester I *F. Malerba, Economia dell’innovazione, Ristampa 2014; *B.H. Hall, N. Rosemberg, Handbook of Economics of Innovation (Chapters 25 e 26) *Selected papers to be defined Semester II * Introduzione all’Economia dell’Ambiente, di Ignazio Musu (ultima edizione, 2003), Editore Il Mulino. Capitoli: 1, 2, 3, 5, 6. *Selected papers to be defined

The course consists of lectures, flip classrooms, exercises, simulations, and on group-works that will be presented in class at the end of the course.

The overall evaluation for the students attending class consists of an ongoing assessment (based on exercises and simulations and on the content and presentation of group work) which accounts for the 70% of the final grade. The remaining 30% is based on an oral exam. In more detail: Tests (40%): four tests (multiple choice questions) administered to students throughout the year. The weight (0.40) will be applied to the best three grades the student get from these tests. Group Work (30%): two group works throughout the year. Oral exam (30%), 2 questions. The exam will last about 10 minutes. All grades will be on a range from 0 to 30 to which the weights above apply. For non-attending students the rules are as follows: Oral exam (100%) 4 questions, 30 minutes in total (range 0-30) Semester I The program will include: - the whole course program - The book “La nuova rivoluzione delle macchine” di Andrew McAfee e Erik Brynjolfsson, 2017, Feltrinelli. - The paper Economia Digitale, Riccardo Cristadoro, Banca d’Italia, (2019), disponibile online https://www.bancaditalia.it/pubblicazioni/focus-on/2019/FocusOn_1_2019.pdf Semester II The program will include: the whole course program (slides provided by the lecturer) chapters and sections of the book “Introduzione all’economia dell’Ambiente”, by Ignazio Musu (2003), Editore Il Mulino, as indicated in the course syllabus, along with the following articles: reference ITA e ENG reference ITA e ENG

In general, an interest in the subject. From a master's degree student we expect: 1) ability to propose a thesis that can be traced back to the topics or the tools presented during the course; 2) ability to conduct quantitative analyses; 3) initiative and critical thinking when using data and bibliographical resources.