914502

Course

The Management and Economics of Innovation

Faculty

Christoph Grimpe (CG), Professor (mso), cg.ino@cbs.dk
Karin Hoisl (KH), Professor, kh.ino@cbs.dk
Keld Laursen (KL), Professor, kl.ino@cbs.dk
Marion Pötz (MP), Associate Professor, mp.ino@cbs.dk
Thomas Rønde (TR), Professor, thr.ino@cbs.dk
Valentina Tartari (VT), Assistant Professor, vt.ino@cbs.dk

Course Coordinator

Christoph Grimpe

Prerequisites

Basic knowledge of theories related to economics, management, technology, innovation, and organizations. It is a requirement for receiving the course diploma that the students attend the entire course.

Aim

The course aims to provide a set of advanced insights into the field of Management and Economics of Innovation spanning from foundational themes to the most recent developments of the field.

Course content

Both the competitiveness of firms and welfare in general depend on the ability to introduce innovative products, processes and services. Interest in management of innovation has traditionally centered on firm-internal aspects of processes such as, for instance, how collaboration and interaction among specialized professionals take place in the creation of innovation; how to deal with unavoidable uncertainty involved; and the path dependency in skills and resources.

In recent years there has been a surge in interest among scholars and practitioners in methods that allow the firm systematically to source its inputs externally. Innovation that originates from sources external to the firm has emerged as an important phenomenon and has been associated with labels such as open innovation, user innovation, crowd sourcing, and open source. These trends have also given rise to novel and so far immature research agendas that promise to enhance our understanding of the processes and sources of innovation in the years to come.

With respect to the economics of innovation the course will cover modern economic theories related to innovation and intellectual property rights. In that regard, the course will particularly cover licensing on markets for technology as well as networks and network effects.

Teaching style

Lectures, class discussion, exercises, student presentations

Lecture plan

Class	Week	Day	Date	Time	Hours	Room	Topic	Teacher
1	37	Wed	13/09/2017	9:00	3	K3.41	Introduction to the management of innovation	CG
2	37	Fri	15/09/2017	9:00	3	K3.41	Introduction to the economics of innovation	THR
3	38	Wed	20/09/2017	9:00	3	K3.41	Appropriability, markets for technology and innovation strategy	CG
4	38	Fri	22/09/2017	9:00	3	K3.41	Exploration, exploitation and innovation search	CG
5	39	Tue	26/09/2017	9:00	3	K3.41	Licensing contracts	THR
6	39	Fri	29/09/2017	9:00	3	K3.41	Organizing for innovation	KL
7	40	Wed	04/10/2017	9:00	3	K3.41	Networks, collaboration and alliances	KL
8	40	Fri	06/10/2017	9:00	3	K3.41	Open approaches to innovation and the role of users	MP
9	41	Wed	11/10/2017	9:00	3	K3.41	University-industry linkages	VT
10	41	Fri	13/10/2017	9:00	3	K3.41	Employee mobility: theory and empirics	KH

Session 1: Introduction to the management of innovation (CG)
Literature
o Anderson, P., & Tushman, M. L. 1990. Technological discontinuities and dominant designs: A cyclical model of technological change. Administrative Science Quarterly, 35 (4): 604-633.
o Dosi, G. 1982. Technological Paradigms and Technological Trajectories: A Suggested Interpretation of the Determinants and Directions of Technical Change. Research Policy, 11: 147-162.
o Henderson, R., & Clark, K. B. 1990. Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms. Administrative Science Quarterly, 35 (1): 9-30.
o Pavitt, K. L. R. 1984. Sectoral patterns of technical change: towards a taxonomy and a theory. Research Policy, 13 (6): 343-373.

Session 2: Introduction to the economics of innovation: Patents (THR)
Literature
o Scotchmer, S. (2004): Innovation and Incentives, Cambridge, Massachusetts: MIT Press, chapters 2, 4 and 6.

Session 3: Appropriability, markets for technology and innovation strategy (CG)
Literature
o Teece, D. 1986. Profiting from technological innovation: implications for integration, collaboration, licensing, and public policy. Research Policy, 15 (6): 285-305.
o Levin, R., Klevorick, A., Nelson, R. R., et al. 1987. Appropriating the Returns from Industrial Research and Development. Brookings Papers on Economic Activity,(3): 783-820.
o Arora, A., Fosfuri, A., Gambardella, A. 2001. Markets for Technology and their Implications for Corporate Strategy. Industrial and Corporate Change, 10 (2): 419-451.
o Grimpe, C., Hussinger, K. 2014. Resource complementarity and value capture in firm acquisitions: The role of intellectual property rights. Strategic Management Journal, 35(12), 1762-1780.

Session 4: Licensing contracts (THR)
Literature
o Choi, J. P. 2002. A Dynamic Analysis of Licensing: The ‘‘Boomerang'’ Effect and Grant-Back Clauses, International Economic Review, 43: 1468-2354.
o Gallini, N. T. and B. D. Wright. 1990. Technology Transfer under Asymmetric Information, The RAND Journal of Economics, 21: 147-160.
o Scotchmer, S. (2004): Innovation and Incentives, Cambridge, Massachusetts: MIT Press, chapter 6.

Session 5: Organizing for innovation (KL)
Literature
o Argyres, N. S., Silverman, B. S. 2004. R&D, organization structure, and the development of corporate technological knowledge, Strategic Management Journal, 25(8-9): 929 - 958.
o Laursen, K., Foss, N. 2003. New HRM Practices, complementarities, and the impact on innovation performance, Cambridge Journal of Economics, 27(2): 243-263.
o Foss, N. J., Laursen, K., and Pedersen, T. 2011. Linking Customer Interaction and Innovation: The Mediating Role of New Organizational Practices. Organization Science, 22(4): 980-999.

Session 6: Networks, collaboration and alliances (KL)
Literature
o Teece, D.J. 1986. Profiting from technological innovation: Implications for integration, collaboration, licensing, and public policy. Research Policy 15: 285-305.
o Mowery, D., Oxley, J., Silverman, B. 1996. Strategic Alliances and Interfirm Knowledge Transfers. Strategic Management Journal, 17 (Winter 96 special issue): 77-91.
o Ahuja, G. 2000. Collaboration networks, structural holes and innovation: a longitudinal study, Administrative Science Quarterly, 45 (3): 425-455.

Session 7: Exploration-Exploitation and Innovation Search (CG)
Literature
o March, J. G. 1991. Exploration and Exploitation in Organizational Learning. Organization Science, 2(1): 71-87.
o Rosenkopf, L., & Nerkar, A. 2001. Beyond local research: boundary-spanning, exploration, and impact in the optical disk industry. Strategic Management Journal, 22: 287-306.
o Gupta, A. K., Smith, K. G., & Shalley, C. E. 2006. The interplay between exploration and exploitation. Academy of Management Journal, 49 (4): 693-706.
o Olsen, A. ø., Sofka, W. & Grimpe, C. 2016. Coordinated exploration for grand challenges: The role of advocacy groups in search consortia. Academy of Management Journal, 59, 2232-2259.

Session 8: Open approaches to innovation and the role of users (MP)
Literature
o Cohen, W. M., & Levinthal, D. A. 1990. Absorptive Capacity: A New Perspective on Learning and Innovation. Administrative Science Quarterly, 35(1, Special Issue: Technology, Organizations, and Innovation): 128-152.
o Katila, R., and Ahuja, G. 2002. Something Old, Something New: A Longitudinal Study of Search Behavior and New Product Introduction. Academy of Management Journal, 45(8): 1183-1194.
o Laursen, K., & Salter, A. J. 2006. Open for Innovation: The role of openness in explaining innovative performance among UK manufacturing firms. Strategic Management Journal, 27(2): 131-150.
o von Hippel, E. 1994. "Sticky information” and the Locus of Problem Solving: Implications for Innovation. Management Science, 40(4): 429-39.
o Bogers, M., Afuah, A. and Bastian, B. 2010. Users as Innovators: A Review, Critique, and Future Research Directions. Journal of Management, 36(4): 857-875.

Session 9: Employee mobility: theory and empirics (KH)
Literature
o Marx, M., Strumsky, D., Fleming, L. (2009). Mobility, skills, and the Michigan non-compete experiment. Management Science, 55(6), 875-889.
o Groysberg, B., Lee, L. E. (2009). Hiring stars and their colleagues: Exploration and exploitation in professional service firms. Organization Science, 20(4), 740-758.
o Mawdsley, J. K., Somaya, D. (2016). Employee mobility and organizational outcomes: An integrative conceptual framework and research agenda. Journal of Management, 42(1), 85-113.

Session 10: University-industry linkages (VT)
Background literature:
o Stephan, P. 1996. The Economics of Science, Journal of Economic Literature, 34(3): 1199-1235.
o Aghion, P., Dewatripont, M., Stein, J.C. 2008. Academic Freedom, Private-Sector Focus, and the Process of Innovation, The RAND Journal of Economics, 39(3): 617-635.

Learning objectives

o To acquire an understanding and overview of topics in the management and economics of innovation
o To be able to demonstrate knowledge of relevant theories by explaining their assumptions, causal dynamics and processes
o To be able to demonstrate knowledge of the conceptual foundations, frameworks and methods relevant to the study of innovation management and economics

Exam

4-hours written exam (all aids allowed)

Other

Start date

13/09/2017

End date

13/10/2017

Level

PhD

ECTS

Language

English

Course Literature

o Pavitt, K. 1991. What Makes Basic Research Economically Useful? Research Policy, 20: 109-119. o Jaffe, A. 1989. Real Effects of Academic Research. American Economic Review, 79(5): 957-970. o Agrawal, A., & Henderson, R. 2002. Putting Patents in Context: Exploring Knowledge Transfer from MIT. Management Science, 48(1), 44-60. o Bercovitz, J., Feldman, M. 2008. Academic Entrepreneurs: Organizational Change at the Individual Level, Organization Science, 19(1): 69-89.

Fee

6,500 DKK

Minimum number of participants

Maximum number of participants

Location

Kilen
Kilevej 14A, room K3.41

Teaching in weeks 37-41, 2x3 hours per week, exam in week 42.
10 sessions with 3 hours each

Contact information

PhD Support
Bente S. Ramovic
bsr.research@cbs.dk
Tel.: +45 3815 3138

Registration deadline

15/08/2017

Your registration is binding after the registration deadline.

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