ECONOMICS OF INNOVATION, ENVIRONMENT AND SOCIETY

ECONOMICS OF INNOVATION, ENVIRONMENT AND SOCIETY

Maria Savona, Alberto Marzucchi

Obiettivi formativi

The course offers the fundamentals of the economics of innovation, industrial dynamics and climate change. It covers topics on the impacts of innovation on economic and employment, market structure and climate change, such as investments in R&D and other intangibles, intellectual property (IP), market concentration, international fragmentation of production, and sustainability. The course includes a module on Global Value Chains and sustainability in Europe as part of the LUISS Jean Monnet Excellence Research Centre. Seminal papers and chapters from handbooks and textbooks will be presented and discussed during classes.

Risultati di apprendimento attesi

1) Knowledge and Understanding: At the end of the course students will be able : - to understand sources, nature and economic effects of innovation. - to understand the intersections between innovation and environmental sustainability - to understand the societal consequences of innovation, including inequality, uneven economic performances of countries, regions and sectors 2) Applying knowledge and understanding: The student will be able: - to perform empirical analyses focused on innovation in different contexts; - to analyse the innovation activities employing a varied array of indicators and measures, which are adequate to the investigated contexts 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 activities and work group allow them to acquire those dynamic capabilities useful for their career know-how students accumulate during the class activities and work group allow them to acquire those dynamic capabilities useful for their career.

Contenuti Del Corso

The course focuses on key areas: - An overview of key concepts and taxonomy to understand innovation. - Growth and employment effects of innovation - Green innovation and climate change - Emerging Digital technologies - Innovation, Trade and GVCs - Key policy instruments: IP and R&D policy.

Testi Di Riferimento

Lecture slides, academic articles will be made available during the course on LUISS LEARN platform

Metodologie Didattiche

The course consists of lectures, interactive sessions with student presentations and discussions, peer-to-peer sessions, data hands-on sessions, and on group-works that will be presented in class at the end of the course.

Modalità di verifica dell'apprendimento

The overall evaluation for the students attending class consists of an ongoing assessment (multiple choice questionnaires administered during the course, and on the content and presentation of group work) which accounts for the 70% of the final grade. The remaining 30% is based on a final oral exam (which covers the entire course, i.e. first + second semester).

Criteri per l’assegnazione dell’elaborato finale

In general, a strong interest in the subject. From a master's degree student we expect: 1) ability to propose a thesis that within scope of the topics presented during the course; 2) ability to conduct quantitative analyses; 3) critical thinking when using data and bibliographical resources.

Settimana 1

First term 1. Plenary: Introduction to the course 2. Plenary: Taxonomy and measurement of innovation. Smith, K., ' Measuring Innovation', in Jan Fagerberg, and David C. Mowery (eds), The Oxford Handbook of Innovation (2006; online edn, Oxford Academic, 2 Sept. 2009) Essential (e) https://doi.org/10.1093/oxfordhb/9780199286805.003.0006 Chapters 3 and 4. Swann, GMP (2009). The economics of innovation. An Introduction. Edward Elgar Recommended (r) Cohen, W. M. (2010). Fifty Years of Empirical Studies of Innovative Activity and Performance. In Hall, B. and Rosenberg, N. (eds) Handbook of the Economics of Innovation. Chapter 4 (except 2.3 and 3) (r) --- Second term 1. Plenary: Innovation and green employment. Lecture - Vona, F., Labour Markets and the Green Transition: a practitioner’s guide to the task-based approach, in Biagi, F. and Bitat, A. editor(s), Publications Office of the European Union, Luxembourg, 2021. 2. Plenary: Innovation and green employment. Paper presentations Consoli, D., Marin, G., Marzucchi, A., & Vona, F. (2016). Do green jobs differ from non-green jobs in terms of skills and human capital?. Research Policy, 45(5), 1046-1060. Robert J.R. Elliott, Wenjing Kuai, David Maddison, Ceren Ozgen (2024). Eco-innovation and (green) employment: A task-based approach to measuring the composition of work in firms, Journal of Environmental Economics and Management, Volume 127 https://doi.org/10.1016/j.jeem.2024.103015.

Settimana 2

First term 1. Plenary: Adoption and diffusion. Lecture Geroski, P. A. (2000). Models of technology diffusion. Research Policy, 29(4), 603-625 (e) Stoneman, P., & Battisti, G. (2010). The diffusion of new technology. In Handbook of the Economics of Innovation (Vol. 2, pp. 733-760). (r) 2. Breakout: hands on session. Innovation survey data Mairesse, J., & Mohnen, P. (2010). Using innovation surveys for econometric analysis. In Handbook of the Economics of Innovation (Vol. 2, pp. 1129-1155). North-Holland (r) --- Second term 1. Plenary. Innovation, structural change and climate change. Lecture Ciarli, T., Savona, M. (2019). Modelling the evolution of economic structure and climate change: a review. Ecological economics, 158, 51-64. Savona, M. and Ciarli, T. (2019) Structural change and sustainability. A selected review of the empirical evidence. Ecological economics, 159, 244-260 2. Breakout session: Hands-on data session on Green Employment and skill data. F. Bontadini, F. Vona (2022) Anatomy of Green specialisation: Evidence from EU Production Data, 1995-2015’,Nota di Lavoro 014.2022, Milano, Italy: Fondazione Eni Enrico Mattei Caldarola, B., Mazzilli, D., Napolitano, L., Patelli, A., & Sbardella, A. (2024). Economic complexity and the sustainability transition: A review of data, methods, and literature. Journal of Physics: Complexity.

Settimana 3

First term 1. Plenary: Intellectual property rights. Lecture Chater 3 & 4.1&4.2 Scotchmer, S. (2004). Innovation and incentives. MIT press. (e) Chater 1 Scotchmer, S. (2004). Innovation and incentives. MIT press. (r) Mazzoleni, R., & Nelson, R. R. (1998). The benefits and costs of strong patent protection: a contribution to the current debate. Research policy, 27(3), 273-284. (r) 2. Plenary: Intellectual property rights. Paper presentations Dahlin, K. B., & Behrens, D. M. (2005). When is an invention really radical?: Defining and measuring technological radicalness. Research policy, 34(5), 717-737. Castaldi, C. (2018). To trademark or not to trademark: The case of the creative and cultural industries. Research Policy, 47(3), 606-616. --- Second term 1. Plenary: Innovation, growth and development. Lecture Verspagen, B. (2006) Innovation and Economic Growth, in Fagerberg, J., Mowery, D. C., & Nelson, R. R. (Eds.). (2005). The Oxford handbook of innovation. Oxford University Press, 487-513 Chapter 18 Foster McGregor, N., Alcorta, L, Szirmai, A. & B. Verspagen (eds.), 2021, new Perspectives on Structural Change, Oxford: Oxford University Press. 2. Plenary. Innovation, growth and development. Paper presentations Hidalgo, C. A., Klinger, B., Barabási, A. L., & Hausmann, R. (2007). The product space conditions the development of nations. Science, 317(5837), 482-487 Hidalgo, C. A. (2023). The policy implications of economic complexity, Research Policy, Volume 52, Issue 9, 2023, 104863, ISSN 0048-7333, https://doi.org/10.1016/j.respol.2023.104863.

Settimana 4

First term 1. Plenary: Innovation incentives and policy. Lecture Metcalfe, S (1995), The Economic foundations of Technology Policy: Equilibrium and Evolutionary Perspectives, in Stoneman, P (ed) Handbook of the Economics of Innovation and Technological Change, Wiley Sections: 1, 3, 4 (excluding 4.4), 5.1, 5.2, 6.1, 6.2, 6.3, 6.4, 8.1, 8.2 (e) 2. Breakout sessions: patent data hands-on session Squicciarini, M., H. Dernis and C. Criscuolo (2013), “Measuring Patent Quality: Indicators of Technological and Economic Value”, OECD Science, Technology and Industry Working Papers, 2013/03, OECD Publishing. (R) --- Second term 1. Plenary: Emerging Digital Technologies and employment. Lecture Ekaterina Prytkova, Fabien Petit, Deyu Li, Sugat Chaturvedi, Tommaso Ciarli (2024). The Employment Impact of Emerging Digital Technologies (2024). CESifo Working Paper No. 10955 2. Breakout session: Hands-on data session on TechXposure data TechXposure Database (v0.9.0)

Settimana 5

First term 1. Plenary: Innovation and firm growth. Lecture Chapters 6 and 8. Coad, A. (2009). The growth of firms: A survey of theories and empirical evidence. Edward Elgar (e) 2. Plenary: Innovation and firm growth. Paper presentations. Nightingale, P., & Coad, A. (2014). Muppets and gazelles: political and methodological biases in entrepreneurship research. Industrial and corporate change, 23(1), 113-143. Coad, A., Segarra, A., & Teruel, M. (2016). Innovation and firm growth: does firm age play a role?. Research policy, 45(2), 387-400. --- Second term 1. Plenary: Innovation, Trade and Global Value Chains. Lecture Filippo Bontadini, Rinaldo Evangelista, Valentina Meliciani, Maria Savona (2024) Technology, global value chains and functional specialisation in Europe, Research Policy, Volume 53, Issue 2, 2024, https://doi.org/10.1016/j.respol.2023.104908. Fontagné, L., Reshef, A., Santoni, G., & Vannelli, G. (2024). Automation, global value chains and functional specialization. Review of International Economics, 32(2), 662–691. https://doi.org/10.1111/roie.12711 2. Plenary: Innovation, Trade and Global Value Chains. Methodological lecture Guest Lecture by Ariel Wirkierman Measuring globalisation and global value chains (GVCs) through Input-Output techniques

Settimana 6

First term 1. Plenary: Geography of innovation. Lecture Feldman, M. P., and Kogler, D. F. (2010). Stylized facts in the geography of innovation (Chapter 8). In Hall, BH and Resenberg N (Eds) Handbook of the Economics of Innovation, volume 1, 381-410 (e) 2. Breakout sessions. Mid term assessment. Multiple choice questions --- Second term 1. Plenary: Plenary. The Value and Governance of Data. Lecture Coyle D., Diepeveen S., Wdowin J., Kay L., Tennison J., (2020) The Value of Data – Summary Report 2020 and Literature Review, Bennet Institute for Public Policy, the Open Data Institute and Nuffield Foundation Savona, M. (2019). The value of data: Towards a framework to redistribute it. SPRU Working Paper Series 2019-21 2 .Breakout sessions. Mid-term assessment. Multiple choice questions

Settimana 7

First term 1. Plenary. Cooperation and alliances. Lecture Hagedoorn, J., Link, A. N., & Vonortas, N. S. (2000). Research partnerships. Research policy, 29(4-5), 567-586 (e) Laursen, K., & Salter, A. (2006). Open for innovation: the role of openness in explaining innovation performance among UK manufacturing firms. Strategic management journal, 27(2), 131-150 (e) Foray, D., & Lissoni, F. (2010). University research and public–private interaction. In Handbook of the Economics of Innovation (Vol. 1, pp. 275-314). North-Holland (r) 2. Plenary. Cooperation and alliances. Paper presentations D’Este, P., & Patel, P. (2007). University–industry linkages in the UK: What are the factors underlying the variety of interactions with industry?. Research policy, 36(9), 1295-1313. Elisa Giuliani, The selective nature of knowledge networks in clusters: evidence from the wine industry, Journal of Economic Geography, Volume 7, Issue 2, March 2007, Pages 139–168, https://doi.org/10.1093/jeg/lbl014 --- Second term 1. Plenary: Artificial Intelligence. Lecture Mateos-Garcia, (2018) The Complex Economics of Artificial Intelligence, NEST Working Paper. 2. Plenary: AI student presentations Agrawal, A., Gans, J. S., & Goldfarb, A. (2019). Artificial intelligence: the ambiguous labour market impact of automating prediction. Journal of Economic Perspectives, 33(2), 31-50. Klinger, J., Mateos-Garcia, J. C., & Stathoulopoulos, K. (2018). Deep learning, deep change? Mapping the development of the Artificial Intelligence General Purpose Technology. Mapping the Development of the Artificial Intelligence General Purpose Technology.

Settimana 8

First term 1. Plenary. Green technology and Innovation I. Jaffe, A., Newell, R.G. and Stavins, R.N. (2003), Technological Change and the Environment, in Maler and Vincent (eds) Handbook of Environmental Economics, Vol 1, Elsevier (except 3.2.2, 3.2.3, 3.3, 3.4.1, 4.2.1, 4.2.2, 4.2.3, 4.3) (e) Rodrik, D. (2014). Green industrial policy. Oxford Review of Economic Policy, 30(3), 469-491 (r) --- Second term 1.Plenary. Jean Monnet lectures by Professor Daniele Archibugi 2.Plenary. Jean Monnet lecture by Daniele Archibugi

Settimana 9

First term 1. Plenary. Environmental innovation meets profitability. Lecture Ambec, S. & Lanoie, P. (2008). Does it pay to be green? A systematic overview. Academy of Management Perspectives, 22(4), 45-62. (e) Porter, M. E., & Van der Linde, C. (1995). Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9(4), 97-118. (r) 2. Plenary. Environmental innovation meets profitability. Paper presentations Leoncini, R., Marzucchi, A., Montresor, S., Rentocchini, F., & Rizzo, U. (2019). ‘Better late than never’: the interplay between green technology and age for firm growth. Small Business Economics, 52, 891-904. Alessandra Colombelli, Claudia Ghisetti, Francesco Quatraro, Green technologies and firms’ market value: a micro-econometric analysis of European firms, Industrial and Corporate Change, Volume 29, Issue 3, June 2020, Pages 855–875, https://doi.org/10.1093/icc/dtaa003 --- Second term 1.Plenary. Jean Monnet lectures by Professor Daniele Archibugi 2.Plenary. Jean Monnet lectures by Professor Daniele Archibugi

Settimana 10

First term 1. Plenary. Green innovation, sourcing and complexity Barbieri, N., Marzucchi, A., & Rizzo, U. (2020). Knowledge sources and impacts on subsequent inventions: Do green technologies differ from non-green ones?. Research Policy, 49(2), 103901. (e) Barbieri, N., Marzucchi, A., & Rizzo, U. (2023). Green technologies, interdependencies, and policy. Journal of Environmental Economics and Management, 118, 102791. (e) 2. Breakout sessions. Assessed Presentations --- Second term 1.Plenary. Jean Monnet lectures by Professor Daniele Archibugi 2.Breakout sessions. Assessed Presentations

Settimana 11

First term 1. Plenary. New paradigms: circularity and twin transition. Lecture Ghisellini, P., Cialani, C., & Ulgiati, S. (2016). A review on circular economy: the expected transition to a balanced interplay of environmental and economic systems. Journal of Cleaner production, 114, 11-32. (e) Diodato, D., Huergo, E., Moncada-Paternò-Castello, P., Rentocchini, F., & Timmermans, B. (2023). Introduction to the special issue on “the twin (digital and green) transition: handling the economic and social challenges”. Industry and Innovation, 30(7), 755-765. (r) 2. Plenary. Student presentations. Cainelli, G., D’Amato, A., & Mazzanti, M. (2020). Resource efficient eco-innovations for a circular economy: Evidence from EU firms. Research Policy, 49(1), 103827. Cicerone, G., Faggian, A., Montresor, S., & Rentocchini, F. (2023). Regional artificial intelligence and the geography of environmental technologies: does local AI knowledge help regional green-tech specialization?. Regional Studies, 57(2), 330-343. --- Second term 1.Plenary. Jean Monnet lectures by Professor Daniele Archibugi 2.Plenary. Jean Monnet lectures by Professor Daniele Archibugi

Settimana 12

First term (12 week) 1. Plenary. Wrap up and Q&A 2. Breakout sessions: assessed student project presentations Second term (12 week) 1.Plenary. Jean Monnet lectures by Professor Daniele Archibugi 2.Plenary. Jean Monnet lectures by Professor Daniele Archibugi Second term (13 week) 1. Plenary. Wrap up and Q&A 2. Breakout sessions. Assessed Presentations