Economics of Innovation

 Suzanne Scotchmer (website)

Technology News and Data links

Courses on Innovation and Science Policy

 

These materials can be used and modified by others, subject to

Creative Commons NC-SA License

 

Description:  The course starts with a short overview of the institutions that have historically supported innovation, then considers knowledge as a public good, the design of incentive mechanisms such as prizes and intellectual property, different models of cumulative innovation; the relationship of competition to IP licensing and joint ventures, patent and copyright enforcement and litigation, private/public funding relationships; patent values and the return on R&D investment, intellectual property issues arising from direct and indirect network externalities, and globalization.

 

Main Text:  Innovation and Incentives (S. Scotchmer, MIT Press 2004).

Supplementary chapter on Japan (Professor R. Aoki)

 

The course below is suited for advanced undergraduates in economics and for MBA students who have previously completed a course in microeconomic theory.  A course for doctoral students should be supplemented with readings from the professional articles listed at the ends of chapters. 

 

Date

Topic

Required

Chapter

Other reading and lectures.

If required, there is a star.

 

 

 

 

Week 1

Institutions for Innovation: A Brief History 

Ch 1

Review Questions

The Case of Japan (R. Aoki)

Zorina Khan, 2005.  The Democratization of Invention.  Cambridge Press.

Joel Mokyr, Giftfs of Athena.  Princeton University Press, 2002.

Mowery and Rosenberg, 1998. Paths of Innovaton.  Cambridge Univ Press

Week 2

Investing in Knowledge 

Ch 2

Review Questions

Prizes for science

Future Imperfect (on Stem Cells, by Ian Hart)

Week 3

IP Law basics

Ch 3

Review Questions

 Landes and Posner: The Economic Structure of Intellectual Property Law

Check out a patent.  and a plant patent

International Herald Tribune on Google's Belgian news wars

NYTimes on Google's Belgian News Wars

Week 4/5

Design of IP: length and breadth

Ch 4

Review Questions

 

Weeks 6

Cumulativeness in Research

Ch 5 

Review Questions

Spitting Image” (Inkjet Printer), Sept 19, 2001, The Economist

Invention of Email”, Pretext Magazine 1998.

 C. Townes.  1999.  How the Laser Happened.   Oxford Univ Press

Myths and Realities of Neem-based Patents

Week 7

Antitrust and Licensing

Ch 6

Review Questions

Linux & Microsoft in cross-licensing agreement

Pfizer v. Apotex

WSJ, Jan 2007.  Inside Abbott's Tactics to Protect AIDS Drug.

WSJ, Nov 2007.  Glaxo Sues Abbott.

Week 8

Open Source as an Incentive Mechanism

Guest: Maurer

Open Source Software: The New IP Paradigm. Maurer and Scotchmer, Von Hippel, Democratizing Innovation, MIT Press 2005

Maurer, Sali & Rai. 2004 Finding Cures for Tropical Diseases: Is Open Source the Answer? Public Library of Science: Medicine 1:56-58.

Lerner and Tirole, "The Economics of Technology Sharing: Open Source and Beyond" Paper 10956 (2004)

Week 9

 

Midterm

 

E. M. Rogers, "The Diffusion of Innovations", Simon & Shuster (Free Press). Latest edition 1995.

Week 10

Enforcement through Litigation and Technical Protections

 Ch 7

Review Questions

 Linux & Microsoft in cross-licensing agreement

Week 11

The Public Sector

Ch. 8

Review Questions

”Invention of Email”, Pretext Magazine 1998.

Nature July 15, 2004.  Scientific Impact of Nations.

Future Imperfect (on Stem Cells, by Ian Hart)

Gerth and Stolberg, "Drug Makers Reap Profits On Tax-Backed Research" New York Times Apr 23, 2000

Link, A. N. Public/Private Partnerships.  2005. Springer.

Nelson, Sampat, Ziedonis and Mowery, 2005. Ivory Tower and Industrial Innovation, Stanford University Press.

Week 12

Measurement issues

Ch 9

Review Questions

R. Easterlin. 1999. “Growth Triumphant.” Univ of Mich. Press.

P. David, "The Dynamo and the Computer: Historical Perspective on the Productivity Paradox." May 1990. 

Patent Power Harry Goldstein

Week 13

Finding Cures for Tropical Diseases

Stephen M. Maurer

Review Questions

Maurer, Sali & Rai. 2004 Finding Cures for Tropical Diseases: Is Open Source the Answer? Public Library of Science: Medicine 1:56-58.

 Week 14

Network Effects

Ch 10 

Review Questions

Metcalf's Law

Compatibility Issues: Internet, Cellphones

Surowiecki, "In Praise of Third Place" (The modern game market)

Just for fun: Patent Application on How to Make A Sandwich

Week 15

Innovation in the global Economy

Ch 11

Review Questions

The Economist, "Scattering the Seeds of Invention: The Globalization of R&D" Sept 2004.

 

 

News and Data Links  top

Science 

New York Times Circuits

The Economist - science and technology news
NSF Science and Engineering Indicators

European Patent Office 

U.S. Patent and Trademark Office

 

Other courses on Innovation and Science Policy  top

Science Policy (University of California, Berkeley, Spring 2006)

Economics of Innovation Website (Lausanne)

Innovation Workshop (Haas School of Business, Berkeley, Fall 2006)

Cyberlife (University of California, Berkeley, 2004)

Homeland Security(with webcast videotaped lectures and materials)

History of Computing (University of California, Berkeley, Fall 2006)

 

BERKELEY CAMPUS EVENTS AND OPPORTUNITIES                        top

Innovation Seminar, Haas School of Business, Weds 12-2

Science, Technology and Society Center, Lecture Series

Energy and Resources Group, Public Lectures

Science, Technology and Engineering Policy Group

Berkeley Law and Economics Workshop Mondays, 12:15-2:00

 

 

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