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2011/2012  KAN-CM_N73  Economics and Management of Innovation

English Title
Economics and Management of Innovation

Course Information

Language English
Point 7,5 ECTS (225 SAT)
Type Elective
Level Full Degree Master
Duration One Semester
Course Period Autumn
Pending schedule: Thursday 13.30-16.05, week: 36-37, 39-41, 43-47
Time Table Please see course schedule at e-Campus
Study Board
Study Board for MSc in Economics and Business Administration
Course Coordinator
  • Cedric Schneider - Department of Economics
Administrator: Ida Lyngby - il.eco@cbs.dk
Main Category of the Course
  • Innovation and entrepreneurship
  • Management
  • Corporate and Business Strategy
  • Economics, macro economics and managerial economics

Taught under Open University-Taught under open university.
Last updated on 29 maj 2012
Learning Objectives
After completing this course, the students should be able to:
- demonstrate an understanding of the concepts and theories introduced in the course
- identify economic and management issues in actual cases of innovation and technology
- apply the concepts and theories introduced in class to these cases
- analyze the economic and management problems in these cases, and draw policy (or welfare) as well as management implications
While no academic prerequisites are necessary, basic knowledge in introductory economics (or microeconomics) as well as management would be an advantage.
4 hour written exam (open book)
4 hour written exam (open book):
Assessment Written Exam
Marking Scale 7-step scale
Censorship No censorship
Exam Period Winter Term
Aids Please, see the detailed regulations below
Duration 4 Hours

The exam is PC-based with no internet access.
Course Content

Ideas and innovation have become the most important resource in today's economy. Successful managers should know how to recognize, manage and generate technological innovation for sustained competitive advantage.

The course aims at providing the students with a comprehensive understanding of the origins, dynamics and consequences of innovation and intellectual property from an economic and managerial perspective.

The first part of the course uses economic concepts to illustrate the nature of technological innovation and how it contributes to the growth of firms, industries and economies.

This part of the course will cover the following topics:

  1. The nature and importance of innovation, technological change and intellectual property
  2. The impact of innovation on national economic performance
  3. Innovation, market structure and entrepreneurship
  4. Innovation and economic policy

The second part of the course aims at introducing theories, models and tools that are central to managing the identification, development and commercialization of innovations, plus the consequences of doing so in a competitive environment.

Core topics with regards to innovation management include:

  1. Devising and implementing an innovation strategy
  2. Searching for novel ideas and tools to evaluate ideas
  3. New business models in the area of open and distributed innovation
  4. Organizing for innovation
Teaching Methods
The course’s development of personal competences:
The students will gain competences in:
-reading and analyzing scientific literature
-analytical skills
-identifying, developing and evaluating policies to promote innovation
-analyzing successful innovation management practices
-case analysis related to the economics and management of innovation

Recommended literature:

Greenhalgh, C. and Rogers, M., “Innovation, Intellectual Property, and Economic Growth”, Princeton University Press, 2010, 366 pages.

Schilling, M. A., “Strategic management of technological innovation”, McGraw-Hill (3rd edition), New York, 2010.

Grimpe, C. and U. Kaiser (2010), “Balancing Internal and External Knowledge Acquisition: The Gains and Pains from R&D Outsourcing”, Journal of Management Studies 47 (8), 1483-1509.

Laursen, K. and A. Salter (2006), “Open for Innovation: The Role of Openness in Explaining Innovation Performance among U.K. Manufacturing Firms”, Strategic Management Journal 27, 131-150.

March, J.G. (1991), “Exploration and Exploitation in Organizational Learning”, Organization Science 2 (1), 71-87.

Scotchmer, S. (2004), “Innovation and Incentives”, MIT Press: Cambridge