Friedrich-Schiller-Universität Jena · Postfach · D-07743 Jena

 

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Economics of Innovation III – Economic Dynamics and Structural Change Prof. Dr. Uwe Cantner / Dr. Simone Vannuccini

Winter semester 2016/2017

RE-TAKE EXAM April 12, 2017

GENERAL INFORMATIONS - Write your name, surname and student number on ALL answer sheets. - Read all the questions carefully before you start! - You have 60 minutes to complete the exam. - There is no maximum length for the replies to the open questions: you have to allocate your time efficiently! - The value of each exercise reflects the time allocation: you can gain a maximum of 60 points: 20 points

belonging to exercises in part 1, 20 points belonging to exercises in part 2 and 20 points belonging to exercises in part 3.

- The notation in the graphs is the same as used in the lecture’s slides. - Good luck!

1) INNOVATION IN THE INTERNATIONAL TRADE CONTEXT (20 POINTS) 1.1) Consider the following case (Ricardo case):

Show graphically and discuss the following comparative statics:

- Product innovation in Country H.

 

 Friedrich-Schiller-Universität Jena · Postfach · D-07743 Jena

 

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1.2) Now, consider the following case (Innovation case):

Show graphically and discuss the following comparative statics:

- Process innovation in Country H. 1.3) Reply to the following question:

1.3.1) Explain the International Product Life Cycle theory of Vernon (1966), possibly using a graphical scheme.

 

 Friedrich-Schiller-Universität Jena · Postfach · D-07743 Jena

 

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2) GENERAL PURPOSE TECHNOLOGIES (20 POINTS) Reply to the following questions:

2.1) Describe the model of Bresnahan, T., Trajtenberg, M. (1995), General purpose technologies “Engines of growth?”, Journal of Econometrics 65(1), 83-108; What is the ‘dual inducement’ mechanisms? What type of externalities does the model generate?

2.2) In which sense the Generality index 1 ∑ used by (Hall, B., Trajtenberg, M.

(2004), Uncovering GPTs with patent data) can be considered a sort of concentration index? 2.3) How is the theory of Long Waves related to that of General Purpose Technologies? Elaborate.

3) INNOVATION NETWORKS AND SYSTEMS (20 POINTS) 3.1) Describe (if possible, also formally) the following network statistics/concepts:

(i) Cutpoint/Bridge; (ii) Clustering Coefficient; (iii) Mean Degree; (iv) Betweenness Centrality; (v) Centrality Index (for a whole Network);

3.2) Reply to the following questions:

3.2.1) Consider a network with n nodes. What it the maximum amount of ties one node can be linked to? What is the maximum amount of ties for the whole network? 3.2.2) Describe what an Innovation System is and list some types of Innovation Systems.