Learning Outcomes
Students shall be given the ability to
• identify the importance of alternative incentive mechanisms for the emergence and dissemination of innovations
• understand the relationships between market structure and the development of innovation
• explain, in which situations market interventions by the state, for example taxes and subsidies, can be legitimized, and
evaluate them in the light of economic welfare

Content
• Incentives for the emergence of innovations
• Patents
• Diffusion
• Impact of technological progress
• Innovation Policy

Media
• lecture slides
• exercises

Literature
Excerpt:
• Aghion, P., Howitt, P. (2009), The Economics of Growth, MIT Press, Cambridge MA.
• de la Fuente, A. (2000), Mathematical Methods and Models for Economists. Cambridge University Press, Cambridge, UK.
• Klodt, H. (1995), Grundlagen der Forschungs- und Technologiepolitik. Vahlen, München.
• Linde, R. (2000), Allokation, Wettbewerb, Verteilung - Theorie, UNIBUCH Verlag, Lüneburg.
• Ruttan, V. W. (2001), Technology, Growth, and Development. Oxford University Press, Oxford.
• Scotchmer, S. (2004), Incentives and Innovation, MIT Press.
• Tirole, Jean (1988), The Theory of Industrial Organization, MIT Press, Cambridge MA.

Remarks
The credits have been changed from 4,5 to 5.