Economics

Industrial Dynamics

Module code: L1103
Level 6
15 credits in autumn semester
Teaching method: Lecture, Seminar
Assessment modes: Coursework, Essay

Are there ‘natural laws’ behind how firms behave, compete, and change over time? How do industries evolve? In this module, we uncover the foundations of ‘Industrial Dynamics’ and innovation. The course will guide students through the basic determinants of industry evolution using stylized facts and empirical evidence. It will cover theory and empirics of market selection, evolution of industries over time, the formation of spinoffs, network industries and digital marketplaces. At the end of the module, students will be able to understand and model the drivers of industrial change and differences, and their importance to inform policy design and firms’ strategy.

Module learning outcomes

• Systematically understand key aspects driving industrial evolution
• Determine coherent knowledge at the frontier of the field, in particular fundamental economic mechanisms influencing competition, industrial structure, and innovation
• Critically evaluate assumptions and modelling choices in the literature
• Develop their own elaboration of current economic dynamics inducing changes at the firm and industry level by combining the module building blocks