Economics of Business and Innovation

  • Duration: Full semester
  • Spring semester , Exchange student
  • ECTS 7,5 ECTS
  • Application period Application deadline: 15 October

Economics of Business and Innovation is a 7,5 ECTS course during the spring semester on the master's level. A term-paper with oral defence finalizes the course.

The single course is only open to exchange students from our partner institutions. Students applying for the English full degree must view the webpage for full degree students. 

About the course

Possible course combinations

It is not possible to choose other combinations.


Learning outcomes


Upon completion of the course, the student can: 

  • describe the theories and empirical methods for analyzing business innovation, 
  • explain the economics of different stages of innovation processes from basic research to commercialization, 
  • recognize firms’ considerations and trade-offs in innovation investment decisions, including responsible innovation issues, 
  • describe and identify the relationships between characteristics of sectors and products (e.g., firm concentration, value chain organization, product differentiation, etc.) and innovation incentives and behaviour, 
  • discuss the role of innovation and policies in sustainable development, including global climate and environmental challenges and 
  • review the most important findings from research of some topics from the course. 


Upon completion of the course, the student can: 

  • analyse the innovation processes and decide whether they are risky investment projects, 
  • investigate the relationships between market structure characteristics and innovation, 
  • estimate and interpret relationships between firms’ economic performance in terms of productivity, profitability and innovation using econometric techniques on real data, 
  • formulate economic and financial advice for the management of a firm’s innovation processes and 
  • formulate advice for policy makers and the public sector in designing regulations and instruments that can influence R&D, innovation and productivity of firms, irrespective of whether they were initially intended for these very purposes or were designed primarily for other purposes. 

General competence 

Upon completion of the course, the student can: 

  • manage innovative possesses based on state-of-the-art theories and methods and 
  • use analytical tools for firms making decisions on investments in innovation or when they significantly change their business


Course content

The following topics are covered. 

  • Microeconomics of technical change 
  • Market failure (public goods, externalities, asymmetric information, etc.) 
  • Monopoly power and intellectual property rights 
  • Innovation and productivity growth 
  • Innovation and profitability 
  • Innovation and sustainability 
  • Agglomeration economies 
  • Geography of innovation 
  • The diffusion of new technology 
  • Energy and natural resource markets


Teaching and working methods

The following teaching methods are used. 

  • Lectures 
  • Seminars that also include student presentations and discussions. Each student will be required to give at least one seminar presentation. 
  • Self-study


Coursework requirements

  • Students must pass three out of four mandatory course requirements to be allowed to take the exam. 
  • 50% attendance in classes is required.



  • Term paper (80%). 
  • Oral defence / examination (20%).


Examination support material

  • Term paper: All resources. 
  • Oral defence / examination: None.

Practical information


Students must be enrolled in a Master's degree within the field of Business Management, Economics or similar. 



On-campus housing is eligible for students applying for a full semester/academic year.

General information on accommodation at Campus Lillehammer

What does it cost?

Free for exchange students

Study start information

An Orientation Week is arranged in the first week of the spring semester. The first lectures of the course are expected to begin during the same/following week. 

Would you like to apply?

The course is available only for students coming from our partner institutions. Contact the International Coordinator at your home institution to find out if you are eligible for exchange studies at Inland Norway University of Applied Sciences (INN University). Please notice that applications can be submitted for one campus only.

Application procedure and documents