The course provides an understanding of the economics of innovation and climate change. It will provide students with concepts from economic theory and innovation studies to make sense of innovation, intellectual property (IP), research and development (R&D) policy, firm growth and economic competitiveness more at large. Furthermore, the course will also cover key issues around how technical change and innovation can be leveraged to tackle climate change, and the impact on the economy and employment in particular. Economics is not only a body of knowledge and concepts, but it also relies on a methodological framework to examine social and economic outcomes, largely based on statistical and quantitative techniques. Theories, methods and evidences of Economics of Innovation underpin business and policy decisions: the course will also provide students with the ability to critically study and interpret economic data, formulate evidence-based policy decisions and design research projects for these purposes. To achieve this, the course also includes two applied laboratories where students will receive an introduction to the programming language R, one of the most frequently used for research and data analysis. In addition, students will also benefit from participating to Luiss Research and Innovation Lab. Within this, activities covering quantitative skills will be the focus of the course.

Knowledge and understanding: Students will receive an overview of ideas and theories to understand innovation, with a focus on green innovation, which will be one of the key tools to tackle climate change. Students will also learn key concepts to better understand and assess technological change brought about by innovation. Finally, students will gain familiarity with the use of economic data and quantitative methodologies commonly used to carry out empirical analysis within the field of economics of innovation. Applying knowledge and understanding: Students will be able to apply the knowledge in the following ways: - Ability to assess the importance of different kinds of innovation for businesses. - Appreciate the importance of intellectual property and R&D policy and how these shape firms’ behaviour. - Evaluate and understand the implications of green innovation for the labour market. - Accurately select variables and data to measure innovation and green production. Making judgements: Students will be able to analyse the implications innovation on key economic variables. They will do so by relying on different understandings of these phenomena, that will be discussed extensively throughout the course. Finally, throughout the course student will develop the ability to critically assess economic arguments. Communications Skills: The course will provide students with accurate and correct terms to understand and discuss issues relating to technological change and its relationship with economic variables. Oral presentations will be a crucial aspect of the course, providing students with the confidence to clearly discuss in public key economic aspects relating to the digital transformation. Learning skills: The course will empower students with the confidence and competence to critically discuss economic concepts and empirical facts related to innovation, climate change and the economic implications of green innovation.

The course focuses on 4 key areas: - An overview of key concepts and taxonomy to understand innovation. - Two key policy instruments: IP and R&D policy. - How innovation diffuses and its implication for economic growth. - Green innovation and climate change.

Lecture slides, research papers and articles will be made available during the course on the e-learning platform.

The course will blend face-to-face lectures with group presentations and discussions based on readings, together with applies laboratories.

Proficiency and attainment of the learning outcomes will be assessed through group presentations during the term, which will provide further opportunity for discussion in class, a group project, and a written exam. These assessments will count for 30%, 40% and 30% respectively. Group presentations will take place weekly and will involve the discussion of the weekly reading. Students will be required to focus on key aspects of the reading: 1. The main issue that the paper discusses (Knowledge and understanding). 2. The argument that the authors put forward in regards with the paper’s main question (Applying knowledge and understanding). 3. The empirical approach (if applicable) the authors have chosen: the choice of data and challenges related to this (Applying knowledge and understanding). 4. An assessment of the strengths and weaknesses of the paper’s argument (Making judgements). 5. Discuss the aspects above in a clear and concise manner, using appropriate vocabulary and concepts (Communication skills). The written exam will ask students to discuss one out of a choice of three broad topics from the module. It will take place in an “open-book” setting, students will be required to: 1. Show an understanding of the topic they chose to discuss (Knowledge and understanding). 2. Discuss the main issues concerning the topic (Applying knowledge and understanding). 3. Discuss the key arguments that the literature has put forward in relation to the issues concerning the topic (Making judgement). 4. Present their arguments in a clear and concise manner, using appropriate vocabulary and concepts (Communication skills). Finally, the group project will provide students with the opportunity to apply the knowledge and skills acquired during the module to a topic of their choosing that interests them. Students will present an applied, data-driven exploration of innovation from an economic point of view. This can be based on any source of data or case study. A range of relevant topics and sources will be presented in the first class of the module. While students are encouraged to come up with their own specific topic for this project, possible topics can be: 1. A focus on green technologies in a specific country and industry. 2. A focus on a specific green technology (AI, internet, robotization, digital trade) and its diffusion across sectors and countries. 3. A case study of business models that have undergone significant changes to increase their sustainability. 4. A innovation policy instrument that has been successful or unsuccessful and a discussion of this has come to be. In carrying out this project students will be expected to: 1. Present the topic the students have chosen and its relevance (Making judgements and Communication skills). 2. Discuss the key concepts that are relevant to study the topic (Applying knowledge and understanding). 3. Discuss the key issue and implications around the chosen topic (Applying knowledge and understanding and Learning skills). 4. Present in a clear and concise manner the main results of their analysis (Learning skills and Communication skills).

Attendance, participation and final mark obtained through all assessments.

Yes