Economics of Science and Innovation Part I: Theory and facts Ramon Marimon
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1 Universitat Pompeu Fabra GPEFM Winter 2006 Ramon Marimon & Walter Garcia-Fontes Tuesdays & Wednesdays 9:00 11:00 (20.173) Office hours: Wednesdays 11:30 a 13:30 (20.212) and by appointment (ramon.marimon@upf.edu) Economics of Science and Innovation Part I: Theory and facts Ramon Marimon The first part of the course will focus mainly, but not exclusively, on macro theoretical aspects of the Economics of Science & Innovation (S&I), while the second part will focus mainly, but not exclusively, on micro empirical aspects. In this (half) course we will cover six major topics. I plan to cover one topic each week except for the first and last topics that will be covered in one lecture each. Therefore, the course will concentrate in few basic theories and facts. There is no textbook, but a useful reference is: Aghion, Philippe and Peter Howitt. Endogenous Growth Theory, 1999 MIT Press. For each topic, main references are marked with a *. I also include more recent references for those students who want to go deeper into the topic. We will have class discussions, short assignments and presentations, and a final take-home assignment. Students participation, assignments and presentations will count for 30% of the grade of this first part. The grade in this first part counts for 50% of the grade of the course. Students have also the option of writing a paper for the course, in this case the paper will count 1/3, and the grade of both parts 2/3, of the final grade. Program 1. Introduction: Science & Innovation and Socio-Economic Transformations Greenwood & Seshadri 2004*; Jones & Williams. 1998; Parente & Prescott 2004; Lederman & Maloney 2005; European Commission R&D models of economic growth Jones 1995*; Aghion & Howitt 1999 [Ch. 2, 3 & 8.4]*; Aghion & Howitt 2005*;Jones 2004b; Acemoglu, Aghion & Zilibotti. 2003; Jovanovic & Rousseau. 2003; Aghion & Griffith Innovation vs. adoption: complementarities and the role of human capital Jovanovic, 2005*; Comin, & Hobijn. 2003*; Aghion & Howitt 1999 [Ch. 10]; Manuelli & Seshadri 2004; Mokyr Innovation & competition:firm dynamics and financing knowledge capital Kortum & Klette. 2004*; Marimon & Quadrini. 2005*; Aghion & Howitt 1999 [Ch. 7]; Arrow 1962; Cooley, Marimon & Quadrini 2004;
2 5. Intellectual property rights: the theoretical debate Boldrin & Levine. 2003*; Murray & Stern 2005*; Kortum & Lerner 1998; Lerner 2002; Romer 2002; Boldrin & Levine The political economy of S&I and policy design Nelson & Romer. 1996*; Aghion & Howitt 1999 [Chs. 9, 13 & 14]; Nelson 1959; Romer 2000; Stephan References Acemoglu, Daron Directed Technical Change, Review of Economic Studies, 69, Acemoglu, Daron Factor Prices and Technical Change: From Induced Innovations to Recent Debates, in P. Aghion et al. (eds.) Knowledge, Information and Expectations in Modern Macroeconomics: In Honor of Edmund Phelps, Princeton University Press. Princeton, NJ. Acemoglu, Daron, Philippe Aghion and Fabrizio Zilibotti Distance to Fr ontier, Selection and Economic Growth. Journal of the European Economic Association (forthcoming.) Mimeo, MIT. Aghion, Philippe and Peter Howitt A Model of Growth through Creative Destruction. Econometrica, Aghion, Philippe and Peter Howitt Endogenous Growth Theory, The MIT Press. Aghion, Philippe and Peter Howitt Appropriate Growth Policy: A Unifying Framework (The 2005 Shcumpeter Lecture, EEA), mimeo Harvard University. Aghion, Philippe, Christopher Harris, Peter Howitt and John Vickers Competition, Imitation and Growth with Step-by-Step Innovation, Review of Economic Studies, 68, Aghion, Philippe, Caroline Hoxby and Jerome Vandenbussche Growth and the Structure of Education: Evidence from US States, mimeo, Harvard University. Arrow, Kenneth J Economic Welfare and the Allocation of Resources for Invention, in R.R. Nelson ed. The Rate and Direction of Inventive Activity: Economic and Social Facotrs. Princeton, NJ: Princeton University Press. Atkeson, Andrew and Patrick J. Kehoe The Transition to a New Economy after the Second Industrial Revolution. Federal Reserve Bankl of Minneapolis, Staff Report 296.
3 Besen, Stanley M. and Leo J. Raskind An Introduction to the Law and Economics of Intellectual Property, Journal of Economic Perspectives, 5, 1, Boldrin, Michele and David Levine The Case Against Intellectual Property, American Economic Review, Papers and Proceedings, 92(2) Boldrin, Michele and David Levine Competition and Innovation. Mimeo, University of Minnesota and UCLA. Boldrin, Michele and David Levine Against Intellectual Monopoly. e-book: Bresnahan, Tim and Manuel Trajtenberg General Purpose Technologies: Engines of Growth? Journal of Econometrics. Comin, Diego R&D: A Small Contribution to Productivity Growth. NBER Working Paper Comin, Diego and Bart Hobijn Cross-Country Technology Adoption: Making Theory Face the Facts. Mimeo, New York University. Cooley, Thomas F. and Mehmet Yorukoglu Some Macroeconomic Implications of and Information Age. Mimeo, New York University. Cooley, Thomas F. and Mehmet Yorukoglu Innovation and Imitation in an Information Age. The Journal of the European Economic Association, 1(2-3) Cooley, Thomas, Ramon Marimon and Vincenzo Qudrini Aggregate Consequences of Limited Enforceability. Journal of Political Economy, 111(4), David, Paul Can Open Science be Protected from the Evolving Regime of IPR Protection? Stanford Working Paper, European Commission Towards a European Research Area. Key Figures European Commission Third European Report on Science & Technology Indicators: Towards a Knowledge-based Economy. Fagerberg, Jan Technology and International Differences in Growth Rates Journal of Economic Literature, 32, Fagerberg, Jan, David C. Mowery and Richard R. Nelson (eds.) The Oxford Handbook of Innovation. Oxford University Press. Oxford, UK.
4 Gambardella, Alfonso Science and Innovation. Cambridge University Press, Cambridge, UK. Gancia, Gino and Fabrizio Zilibotti Horizontal Innovation in the Theory of Growth and Development. In P. Aghion and S. Durlauf eds, Handbook of Economic Growth. North Holland (forthcoming.) Mimeo, CREi-UPF & IIES, Stockholm University. Greenwood, Jeremy The Third Industrial Revolution: Technology, Productivity and Income Inequality, AEI Studies on Understanding Inequality, Washington, D.C. The AEI Press. Also, printed in the Economic Review, 1999, Federal Reserve Bank of Cleveland. Greenwood, Jeremy and Ananth Seshadri Technological Progress and Economic Transformation. In P. Aghion and S. Durlauf eds, Handbook of Economic Growth. North Holland (forthcoming.) Mimeo, University of Rochester. Greenwood, Jeremy and Gokce Uysal New Goods and The Transition to a New Economy. Mimeo, University of Rochester. Griffith, Rachel and Philippe Aghion Competition and Growth: Reconciling Theory and Evidence. The MIT Press. Cambridge, MA. Grossman, Gene M. and Elhanan Helpman Innovation and Growth in the Global Economy. MIT Press, Cambridge, MA. Hall, Bronwyn Innovation and Diffusion. NBER Working Paper Hall, Bronwyn and van Reenen How Effective Are Fiscal Incentives for R&D? A Review of the Evidence, Research Policy. April Jaffe, Adam B Real Effects of Academic Research, American Economic Review, 79, 5. Jaffe, Adam B. and Manuel Trajtenberg Patents, Citatiotions and Innovations: A Window on the Knowledge Economy, The MIT Press, Cambridge, MA. Jones, Charles I R&D-Based Models of Economic Growth. The Journal of Political Economy, 103(4), Jones, Charles I Sources of U.S. Economic Growth in a World of Ideas. The American Economic Review, 92(1), Jones, Charles I. 2004a. Growth and Ideas. Mimeo, Uinversity of California, Berkeley.
5 Jones, Charles I. 2004b. The Shape of Production Functions and the Direction of Technological Change. Mimeo, Uinversity of California, Berkeley. Jones Charles I. and John Williams Measuring the Social Returns to R&D. Quarterly Journal of Economics, Jones Charles I. and John Williams Too Much of a Good Thing? The Economics of Investment in R&D. Journal of Economic Growth, 5, Jovanovic, Boyan The Product Cycle and Inequality. Mimeo, New York University. Jovanovic, Boyan and Peter L. Rousseau General Purpose Technologies. Mimeo, New York University and University of Chicago. Klein, Benjamin, Andres V. Lerner and Kevin M. Murphy The Economics of Copyright Fair Use in a Networked World, American Economic Review, Papers and Proceedings, 92(2) Kortum, Samuel and Jakob Klette Innovating Firms and Aggregate Innovation, Journal of Political Economy, 112(5), Kortum, Samuel and Josh Lerner Stronger Protection or Technological Revolution: What is Behind the Recent Surge in Patenting? Carnegie Rochester Conference Series on Public Policy, 48, Helpman, E. (ed.) General Purpose Technologies and Economic Growth. MIT Press, Cambridge, MA. Helpman, Elhanan and Manuel Trajtenberg A Time to Sow and a Time to Reap: Growth Based on General Purpose Technologies. In Helpman, E. (ed.) Lederman, Danie l and William F. Maloney R&D and Development. Mimeo, World Bank. Lerner, J Years of Patent Protection. The American Economic Review Papers and Proceedings, 92(2), Manuelli, Rodi and Ananth Seshadri The Contribution of Human Capital to Development. Mimeo, University of Wisconsin. Mazzoleni, Roberto and Richard Nelson The Benefits and Costs of Strong Patent Protection: A Contribution to the Current Debate, Research Policy. 27, Marimon, Ramon and Vincenzo Quadrini Competition, Innovation and Growth with Limited Commitment, mimeo, Universitat Pompeu Fabra and University of Southern California.
6 Mokyr, Joel The Great Synergy: the European Enlightenment as a Factor of Modern Economic Growth, mimeo, Northwestern University. Mokyr, Joel The Gifts of Athena: historical origins of the knowledge economy. Princeton University Press. Princeton, NJ. [Ch. 6] Mokyr, Joel The Lever of Riches: Technological Creativity and Economic Progress. New York: Oxford University Press Murray, Fiona and Scott Stern Do Formal Intellectual Property Rights Hinder the Free Flow of Scientific Knowledge? An Empirical Test of the Anti-commons Hypothesis, mimeo, Northwestern University Nelson, Richard R The Simple Economics of Basic Scientific Research, Journal of Political Economy 67, 3, Nelson, Richard and Paul Romer Science, Economic Growth, and Public Policy, Challenge. 39, 2, Parente, Stephen L. And Edward C. Prescott Barriers to Riches. The MIT Press. Cambridge, MA. Parente, Stephen L. And Edward C. Prescott A Unified Theory of the Evolution of International Income Levels. Federal Reserve Bank of Minneapolis, Research Department, Staff Report 333. Romer, Paul M Should the Government Subsidize Supply or Demand in the Market for Scientists and Engineers? in A.B. Jaffe, J. Lerner and S. Stern (eds) Innovation Policy and the Economy (Volume 1), Romer, Paul M Two Strategies for Economic Development: Uing Ideas and Producing Ideas. World Bank Economic Review, 7(1), Romer, Paul M When Should We Use Intellectual Property Rights? American Economic Review, Papers and Proceedings, 92(2) Rosenberg, Nathan America s Entrepreneurial Universities, in David M. Hart. Ed. The Emergency of Entrepreneurship Policy Ruttan, Vernon W Technology, Growth and Development. Oxford University Press. Scotchmer, Suzanne Innovation and In centives. MIT Press, Cambridge, MA. Stephan, Paula E The Economics of Science, Journal of Economic Literature, 34(3),
7 Stokes, Donald Pasterur s Quadrant: Basic Science and Technological Innovation. Washington, D.C. The Brookings Institution.
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