All programmes > Economics of New Technologies

Economics of New Technologies (B-KUL-D0S13A)

6 ECTSEnglish38 Second termCannot be taken as part of an examination contract
Veugelers Reinhilde |  Helmers Christian (substitute)
OC Handelsingenieur en Handelsingenieur in de beleidsinformatica FEB Campus Leuven

Aims

Upon completion of this course, the student is able to:

  • Review a variety of business strategies for developing and introducing new technologies
  • Identify the sources of profitability of these strategies based on economic models
  • Recognize the role of the environment (structure of competition, structure of demand, uncertainty & information, regulation and other government intervention) and how to take this into account when optimally designing business strategies for new technologies

Explanation

The course covers the economics of innovation and R&D, intellectual property rights (including patent design, licensing and pooling, and intellectual property in the digital economy). The course is based on game-theoretic and other models, empirical work. The course will also introduce and use imperfect and asymmetric information problems in R&D (moral hazard/adverse selection).  It will discuss the use of contracts (including incomplete contracts), incentive schemes, signaling, screening, reputation devices…. as solution mechanisms; It includes applications to and cases from various industries such as health, lCT and clean tech.

Previous knowledge

At the beginning of this course, the student should be familiar with basic concepts and theories in economics, mathematics and statistics, as illustrated in any intermediate (BA level) course on that topic.

Is included in these courses of study

Activities

3 ects. Economics of New Technologies: Part I (B-KUL-D0S13a)

3 ECTSEnglishFormat: Lecture19 Second term
Veugelers Reinhilde |  Helmers Christian (substitute)
OC Handelsingenieur en Handelsingenieur in de beleidsinformatica FEB Campus Leuven

Content

The section “Economics of New Technologies, Part I” consists of:

1. Incentives for Innovation

  • Impact of market structure on incentives for R&D: comparing R&D investments in monopoly, competition and oligopoly;
  • R&D investments and the incentives to enter new markets;  competition between incumbents and entrants.
  • M&A and Innovation
  • Incentives to cooperate in R&D
  • Spillovers and the incentives for R&D

2. Appropriating the returns from R&D: Intellectual Property (IP)

  • Economic rationale of IP (patents & copyright)
  • Patent length and breadth
  • Protecting sequential and cumulative innovations
  • Standard essential patents
  • Strategic Licensing decisions

Course material

Used course material:

The course will be based on chapters from textbooks (such as Belleflamme and Peitz, Industrial Organization; Tirole, Theory of Industrial Organisation, edited books (such  as Hall & Rosenberg & Hall, Handbook of the Economics of Innovation)  or research papers.

Toledo:

Toledo is being used for this learning activity.

Language of instruction: more information

Advanced class that will draw extensively on existing research, which is predominantly in English.

Format: more information

Weekly lectures combined with problem sets.

3 ects. Economics of New Technologies: Part II (B-KUL-D0S14a)

3 ECTSEnglishFormat: Lecture19 Second term
Veugelers Reinhilde |  Helmers Christian (substitute)
OC Handelsingenieur en Handelsingenieur in de beleidsinformatica FEB Campus Leuven

Content

The section “Economics of New Technologies, Part II” consists of:

  • Industry Science Links, incl Tech Transfer at Universities
  • Financing of innovation: Venture Capital, Subsidies
  • Science and Innovation Policy:  Rationale and major instruments

Course material

Used course Material:

The course will be based on chapters from edited books (such  as Hall & Rosenberg & Hall, Handbook of the Economics of Innovation)  or research papers.

Toledo:

Toledo is being used for this learning activity.

Language of instruction: more information

Advanced class that will draw extensively on existing research, which is predominantly in English

Format: more information

Weekly lectures combined with problem sets.

Evaluation

Evaluation: Economics of New Technologies (B-KUL-D2S13a)

Type : Continuous assessment without exam during the examination period
Description of evaluation : Paper/Project, Skills test
Learning material : Course material, Calculator

Explanation


Features of the evaluation

  • The case assignment will be announced in the lectures and on Toledo.

Determination of final grades

  • The result is calculated and communicated as a whole number on a scale of 20 and is computed as the sum of the result for the assignment and additional exercises. If the assignment is not taken, you will get 0 points for this part.