Growth and Innovation in Europe and the Global Economy
Growth is a crucial outcome of the economic process. In many parts of the world, it is a way to elevate people out of poverty. In other parts, it is a way to improve the quality of life not just by increasing consumption of goods and services but also of intangibles like leisure time. The theory of economic growth looks at technological change and innovation as a crucial factor in this process. The incentives for individuals (consumers) and firms for accumulating knowledge, and the institutional environment in which this process takes place, are central elements in the theory of economic growth. However, innovation incentives may be too weak, and therefore policy intervention may become necessary, turning growth into a policy matter. Science and technology policy, but also innovation policy provide therefore important handles for enhancing growth. The course is aimed at building an understanding of the sources of growth, as well as the corresponding policy mechanisms. It looks at how growth may react to economic incentives, and how policy interventions may have an impact on growth performance through these incentives. The latter is especially important for Europe, since the European Commission has traditionally regarded science, technology and innovation policy as a way to increase Europe’s role in the global economy. The course consists of three parallel activities: 1) the study of the underlying theory, 2) execution of computer assignments, and, also as part of those assignment, 3) the review and analysis of policies related to science, technology and innovation. The computer assignments involve the group-wise implementation of dynamic policy simulation models that will be used to investigate the effectiveness of alternative policy options.
Doelstellingen van dit vak
The goal is to understand how innovation and technological change cause economic growth, and growth rate differentials between countries and changes in the distribution of income between groups within countries. Students will develop a deep analytical understanding of the relationship between innovation, economic growth and distribution issues.
Intermediate knowledge of mathematics and economics is required. Exchange Students need to have obtained a Bachelor degree in economics.
To be announced.