Economics of Industrial Innovation

Discipline: EAD5871-7

Concentration area: 12139

Number of Credits: 8

Course load:

(Per week)
(Per week)
(Per week)
Beginning with the supposition that, at this beginning of the century, the permanent search for innovation is the means through which companies can achieve and maintain their competitive advantages this course will examine the conditions and the factors that favour the appearance of innovations.

The constant search for innovation is the means through which companies can achieve and maintain their competitive advantage , thus this course will discuss the economic, social,political and geographical context in which innovation is generated and disseminated. The main focus will be the relation between innovation and globalization . Our discussion will be centered on the understanding of why some companies succeed in developing technology and innovation and why others fail .


Theme but not necessarily in this order Content
General Alignment of the basic Macro and Micro-economics concepts and their relation with innovation.
Technology as a protagonist of globalization and the main responsible for changes that have occurred in the World Economy during recent years.
The relation between the external environment and the Company, Geography and Innovation. The “diamond” model by Michael Porter. The Case of Brazil.
Analysis of the sectors of the World Economy from the point of view of technical change: Textile, Automobile, Semiconductors, Finance, Agro-business and Logistics.
The theme of Industrial Productivity and its relation with different technologies, a measurement of productivity in the generation of technology.
Technology from the viewpoint of the main economists who have dedicated themselves to study of this subject – Ricardo A. Smith, Schumpeter, Kondratiev, Marx, Galbraith, Stiglitz, Romer, and others.
The firm and its technology. The impact of technology on products, processes and business models. Scale and scope economies. Disruptive technology.
Models and methods that make a company innovative. The role of the entrepreneur and the schumpterian point of view.
Strategies to obtain and the origin of competitive advantage: The Role of Innovation.
The role of the large companies in the international production of technology and the importance of the start-ups.
The role of governments and public policy towards the promotion of innovation. The question of intellectual property.
A Panorama of Technology in Brazil and in Latin America – Reasons for the low generation of innovations.
The impact of technology on society and the environment.

Avaliation methods:
1. Final article – 35%

Nothing else

7.1 SWANN, G.M.P ; (2013) “The Economics of Innovation”. Northampton, Edward Elgar Publishing

7.2 FREEMAN C.; (1997) “The economics of Industrial innovation”, Cambridge, Mit Press.
7.3 DICKEN , P.; (2009) “Global Shift: the internationalization of economic activity” London, The Guilford Press.

7.4 LEDERMAN,D.;MESSINA, J.;PIENKNAGURA,S. & RIGOLINI, J. (2014) “Latin America Entrepreneurs: Many firms , but little innovation”. Washington. World Bank.

7.5 BESANKO ,D. (2006) “Economics of Strategy“, Chicago, John Wiley & Sons

7.6 ACEMOGLU ,D. & ROBINSON, J. (2012) “ Why Nations Fail “ . London, Profile Books

7.7 WARSH, D. (2006) “Knowledge and the wealth of Nations”. New York. Norton.

7.8 JOHANSSON, F. (2006) “ The Medici Effect” . Boston. Harvard Business School Publishing.

7.9 MAZZUCATO,M.(2014) “The Entrepreneurial State”. London. Anthem Press.

7.10 SENOR, D. & SINGER, S.(2009) “Start up Nation” . London. Twelve Books.

7.11 KUMAR, N. & PURANAM, P.(2012) “India Inside” .Boston. Harvard Business Review Press.

7.12MIDGLEY, D. (2009) “The innovation manual “ London, Wiley.
7.13KELLEY , T. ( 2005 ) “ The ten faces of innovation “ , New York. Currency.
7.14 FELDMANN, P. (2014) ; “ Management in Latin America “ , New York, Springer .
7.15 MAITAL, S. & SESHADRI , D. (2012) “Innovation Management” , London: Sage Publications .

7.16HARVARD BUSINESS REVIEW - (2011 ) “Inspiring and executing Innovation “ , Boston , HBR Press

7.17 HARVARD BUSINESS REVIEW - (2013 ) “ On Innovation “ , Boston , HBR Press

7.18 .BURGELMAN ,R.(2002) – “Strategy is Destiny”. New York. The Free Press.

7.19 DOZ, Y.; SANTOS, J. & WILLIAMSON, P. (2001) “ From Global to Metanational”. Boston. Harvard Business School Publishing.

7.20 FORD, M. (2015) “The Rise of the robots”. New York. Basic Books

7.21 ROBERTS, J. (2004) “The Modern Firm”. New York. Oxford University Press

7.22. CHESBROUGH ,H (2003) “ Open Innovation: The new imperative for creating and profiting from Technology”. Boston. Harvard Business.

7.23. CHRISTENSEN ,C., DYER,J. & GREGERSEN, H.(2011) “The innovator’s DNA –mastering the five skills of disruptive innovators”. Boston. Harvard Business.

7.24. FLEURY, A. & FLEURY ,M.T. (2011) “Brazilian Multinationals”, Cambridge, Cambridge.

7.25. WILLIAMSON, P. ;RAMAMURTI, R.; FLEURY, A. & FLEURY, M.T. (2013) “ The competitive advantage of Emerging Market Multinationals” . Cambridge- Cambridge.

7.26. PAGÉS , C. “ The age of productivity “ . (2010) – New York. BID

7.27. GORDON , R. “The rise and fall of American Growth” (2016) – New Jersey. Princenton University Press.

8. Artigos

8.1 PORTER,M. & STERN,S. (2001) “Innovation :location matters”. Sloan Management Review.

8.2 MARCH, James (2005) “Exploration and Exploitation in Organizational Learning”.

8.3 SHIH, W. (2013) “ Exploration vs. Exploitation”. In Harvard Business School

8.4 SHIH, W (2013) “Ford Vs GM “ . The evolution of Mass Production (A)

8.5 SHIH , W. (2013) “Ford vs GM” . The evolution of Mass Production (B)

8.6 SHIH, W. (2013) “Ford vs GM” –Teaching Notes

8.7 AZOULAY P. & LERNER, J. (2013) “Technological Innovation and Organizations” in Handbbok of Organizational Economics.

8.8 GROVE, ANDY (2010) “ How to make an American Job” in Business Week

8.9 THE ECONOMIST (2010) “The new masters of management”

8.10 BLOOM ,N. & VAN REENEN, J. (2010 ) – “ Why do Management Practices Differ across Firms and Countries ?” ,in Journal of Economic Perspectives- vol 24 , #1 .

8.11 BLOOM ,N. ;MAHAJAN, A. ; MCKENZIE, D. & ROBERTS, J. “Why do firms in developing countries have low productivity ? , in American Economic Review. 2010.
8.12 BLOOM, N.; GENAKOS, C.;SADUN,R.;VAN REENAN, J. (2012) – “Management Practices across Firms and Countries “

8.13. ECONOMIST - “Workers on tap”. January 3rd, 2015

8.14 ECONOMIST – “A third industrial revolution” . April 21st ,2012

8.15. ECONOMIST – “Rise of the robots” . March 29th ,2014

8.16 ECONOMIST – “Coming to an office near you…”, January 18, 2014