Syllabus

Unit I: Economic theories of innovation
- Importance of innovation in economic growth. Endogenous growth and endogenous innovation models.
- The sources and procedures of innovation, standard input and output measures. Introduction to OECD Oslo and Frascati Manuals.
- Theories of the firm, relationship between market structures and incentives for R&D investment and innovation.
- Economic analysis of different stages of innovation processes.

Unit II: Technology and economic development
- Technology transfer, foreign direct investment (FDI), greenfield and brownfield FDI in R&D.
- Structural changes and the impact of innovation.
o Technology and employment
o Role of technical and higher education research institutions in innovation.
o Entrepreneurship and innovation
o Frugal innovation

Unit III: Market failures and policies
- Market failures and innovation.
- Information and appropriability in innovation, positive and negative externalities.
- Brief introduction to intellectual property rights (IPR).
- Public policies and innovation for development, comparison between developed and developing countries.

Unit IV: Application of innovation economics
- Brief introduction to data and global examples on industrial R&D and innovation.

To provide students with a basic knowledge of modern theories of innovation economics, technological change and development

To understand innovation not only technologically, but also in economic terms.

To have a comprehensive coverage of relevant issues related to innovation with special emphasis on developing countries.

Upon completion, students should have an in-depth knowledge of
i. the micro processes involved in innovation and its measurements
ii. how innovation affects various aspects of economic development
iii. the role of research institutions and public universities in innovation
iv. government innovation policies particularly relevant for the Indian economy.

Jan Fagerberg and David Mowery, The Oxford Handbook of Innovation, Oxford University Press

Shyama V. Ramani, Innovation in India: Combining Economic Growth with Inclusive Development, Cambridge University Press

Bronwyn Hall and Nathan Rosenberg, Handbook of the Economics of Innovation, Elsevier

Jan Fagerberg, Innovation, Economic Development and Policy, Edward Elgar Publishing