GY481      One Unit
Foundations of Innovation Policy

This information is for the 2025/26 session.

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The "Foundations of Innovation Policy" course offers a comprehensive exploration of the strategies and frameworks that underpin effective innovation policy. It begins with the theoretical foundations, including the economics and geography of innovation, the role of government, and the dynamics of innovation systems. Students will then examine case studies on successful innovation policies and their impact on economic growth and societal welfare. The curriculum covers critical topics such as technology transfer, innovation clusters, and the role of universities and research centres. Through lectures, discussions, and project work, students will learn to analyze and design policies that foster innovation, address societal challenges, and drive sustainable development.

15 hours of lectures and 8 hours of workshops in the Winter Term.
15 hours of lectures and 7.5 hours of workshops in the Autumn Term.

This course has a reading week in Week 6 of Autumn and Winter Term.

The course will offer 20 lectures of 1.5 hours each in both AT and WT. 10 workshops of 1.5 hours each will take place every other week in both AT and WT

Students will be expected to produce 1 presentation in the WT.

A detailed reading list will be shared with the students at the beginning of the course.

Core textbooks will include:

• Fagerberg, J. (2018) Innovation, Economic Development and Policy: Selected Essays, Edward Elgar Publishing, Cheltenham
• Jaffe, A. B., & Lerner, J. (2004). Innovation and Its Discontents: How Our Broken Patent System is Endangering Innovation and Progress, and What to Do About It. Princeton University Press. http://www.jstor.org/stable/j.ctt7t655
• Haskel J. & Westlake, S. (2019) Capitalism without Capital: The Rise of the Intangible Economy, Princeton University Press

Academic Papers will include

1. "The Rate and Direction of Inventive Activity: Economic and Social Factors" by Richard R. Nelson (Ed.) - This collection of essays is a seminal work in the field of innovation studies, exploring the impact of economic and social factors on the direction of technological change.
2. "National Systems of Innovation: Towards a Theory of Innovation and Interactive Learning" by Bengt-Åke Lundvall (Ed.) - A key text that introduces the concept of national systems of innovation, emphasizing the role of interactive learning in the innovation process.
3. "Regional Advantage: Culture and Competition in Silicon Valley and Route 128" by AnnaLee Saxenian - This work contrasts the economic geography of two major US technology regions, offering insights into how regional cultures influence innovation ecosystems.
4. "The Sources of Innovation" by Eric von Hippel - Von Hippel's work challenges traditional views on the origins of innovation, highlighting the role of users in the innovation process.
5. "Innovation and Learning: The Two Faces of R&D" by Zvi Griliches - Explores the dual roles of R&D in innovation and learning within firms, providing empirical analysis on its impact on economic growth.
6. "Absorptive Capacity: A New Perspective on Learning and Innovation" by Wesley M. Cohen and Daniel A. Levinthal - Introduces the concept of absorptive capacity, the ability of a firm to recognize the value of new information, assimilate it, and apply it to commercial ends.
7. "The Geographic Sources of Innovation: Technological Infrastructure and Product Innovation in the United States" by Maryann P. Feldman - Examines the geographical distribution of innovation, focusing on the role of local technological infrastructure.
8. "Dynamic Capabilities and Strategic Management" by David J. Teece, Gary Pisano, and Amy Shuen - Discusses how firms can manage and sustain innovation through the development of dynamic capabilities.

Exam (100%), duration: 120 Minutes, reading time: 15 minutes in the Spring exam period