Introduction to Strategy Economics

Description

Practical information Course ID: FEB13044 Credits: 4 EC Instruction language: English Registration procedure: Via OSIRIS Secretariat: Support Office Applied Economics, T18-13, 010 4082776, office.ae@ese.eur.nl Course description Content: The "Introduction to Strategy Economics" course at Erasmus School of Economics provides an in-depth exploration of the economic principles that underpin strategic decisions within firms, industries, and the global economy. This course is designed to equip bachelor’s students with the conceptual frameworks and empirical tools necessary to analyze and understand strategic choices, particularly in the context of innovation, human capital, multinational operations, and competitive dynamics. The course covers a wide range of topics that intersect economics with strategic management, offering students a comprehensive understanding of how firms navigate the complexities of the modern business environment. Lecture 1: Industry Evolution Klepper, Steven. 1997. Industry Life Cycles. Industrial and Corporate Change, 6(1) ,145–182. Utterback, J. M., & Suárez, F. F. (1993). Innovation, competition, and industry structure. Research Policy, 22(1), 1-21. Clayton M. Christensen, Fernando F. Suárez and James M. Utterback. 1998. Strategies for Survival in Fast-Changing Industries. Management Science, 44(12), S207-S220. Lecture 2: Innovation Strategy Williams, Heidi. 2017. How Do Patents Affect Research Investments? Annual Review of Economics 2017. 9:441–69 Lampe, Ryan, and Petra Moser. 2010. “Do Patent Pools Encourage Innovation? Evidence from the Nineteenth-Century Sewing Machine Industry.” Journal of Economic History 70(4): 898–920. Moser, Petra, and Alessandra Voena. 2012. “Compulsory Licensing: Evidence from the Trading-with-the-Enemy-Act.” American Economic Review 102(1): 396 – 427. Lecture 3: Human Capital Strategy G. Zucker, M.R. Darby, and M.B. Brewer, "Intellectual Human Capital and the Birth of U.S. Biotechnology Enterprises," American Economic Review, 88, (March 1998), pp. 290-306. Azoulay, Pierre; Fons-Rosen, Christian; Graff Zivin, Joshua. 2019. Does Science Advance one Funeral At a Time. American Economic Review 109(8),2889-2920. Bhaskarabhatla, A, Cabral, L, Hegde, D, Peeters, T. (2020) Are inventors or firms the engines of innovation? Management Science forthcoming Lecture 4: Global Strategy Farok J. Contractor (2012). Why Do Multinational Firms Exist? Global Strategy Journal, 2/4: 318 J. Kobrin (2017). Bricks and Mortar in a Borderless World: Globalization, the Backlash, and the Multinational Enterprise. Global Strategy Journal (7): 159-171. Govindarajan, V., & Ramamurti, R. (2011). Reverse innovation, emerging markets, and global strategy. Global Strategy Journal, 1(3‐4), 191-205. Lecture 5: Multinational Strategy in Emerging Markets Kolk, A., Rivera-Santos, M., & Rufín, C. (2014). Reviewing a decade of research on the “base/bottom of the pyramid” (BOP) concept. Business & Society, 53(3), 338-377. Prahalad, C. K., (2005). The Fortune at the Bottom of the Pyramid. Wharton School Publishing. Lecture 6: Collusion and Multimarket Contact Cabral, Luis. 2010. Introduction to Industrial Organization. Chapter 8. Collusion. MIT Press. Schmitt, M. (2018). Multimarket contact in the hospital industry. American Economic Journal: Economic Policy 10(3), 361-387. Lecture 7: Venture Capital Financing for Innovation Metrick, A., & Yasuda, A. (2021). Venture capital and the finance of innovation . John Wiley & Sons. Gompers, P., & Lerner, J. (2001). The venture capital revolution. Journal of economic perspectives , 15 (2), 145-168. Lerner, J., & Nanda, R. (2020). Venture capital’s role in financing innovation: What we know and how much we still need to learn. Journal of Economic Perspectives , 34 (3), 237-261. Lecture 8: University and Government Financing for Innovation Hsu, D. H., Roberts, E. B., & Eesley, C. E. (2007). Entrepreneurs from technology-based universities: Evidence from MIT. Research Policy , 36 (5), 768-788. Eesley, C. E., & Miller, W. F. (2018). Impact: Stanford University’s economic impact via innovation and entrepreneurship. Foundations and Trends® in Entrepreneurship , 14 (2), 130-278. Mowery, D. C., & Sampat, B. N. (2004). The Bayh-Dole Act of 1980 and university–industry technology transfer: a model for other OECD governments?. The Journal of Technology Transfer , 30 , 115-127. Sampat, B. N., Mowery, D. C., & Ziedonis, A. A. (2003). Changes in university patent quality after the Bayh–Dole act: a re-examination. International Journal of Industrial Organization , 21 (9), 1371-1390. Hvide, H. K., & Jones, B. F. (2018). University innovation and the professor's privilege. American Economic Review , 108 (7), 1860-1898. Learning goals: Each lecture is associated with specific learning goals. Overall, the course learning goals include understanding, reproducing, applying, and analyzing concepts related to industry evolution and firms strategies related to innovation, and financing of innovation. Changes as compared to previous year: None Extra: None Study materials Zie Canvas page / see Canvas page Entrance requirements Entrance requirements course enrolment: You must meet the following requirements Enrolled for one of the following degree programmes BSc2 Econometrics ECON-DIV Econometrics and Operations Research Economics and Business Economics International Bachelor Econometrics and Operations Research International Bachelor Economics and Business Economics Premaster Economics and Business Premaster Economics and Business Economics Period Enrolment periods: Enrolment period: 1 December 2025 until 16 January 2026 23:59 Unenrolment: until 16 January 2026 23:59 Period of education: 29 december 2025 until 28 februari 2026 Assessment Assessment requirements: Full attendance is required (exceptions are made on an individual case-by-case basis). Assessment materials: Lecture slides and scholarly articles. Material covered in guest lectures. Assessments (result in OSIRIS): Test weight: 25; Test weight: 75 Assessment: Resit opportunity