Jeffrey Parker, Reed College
Course Information
This course examines the effects of science and technology on the economic system, and the economic incentives underlying scientific research and technological development. We will study both historical and modern aspects of these issues, including devoting a substantial amount of time to case studies.
This class will meet for three 50-minute sessions per week, Mondays, Wednesdays, and Fridays at 12:00 noon in ETC 205. Class sessions will be conducted as conferences. Extensive student participation is expected. We will have occasional guest speakers (perhaps scientists, managers, venture capitalists, patent lawyers, etc.) from the science and technology community, who will talk about their roles in technological innovation.
The only prerequisite is Economics 201: Introduction to Economic Analysis. We will use mathematical analysis infrequently in this class. When mathematical models are analyzed, students lacking the calculus tools used in the readings are encouraged to read "between the equations" to develop an understanding of the economic points the author is making.
The instructor will hold formal office hours in Vollum 229 (telephone extension 7308) on Mondays and Tuesdays from 2:30 to 4:00. Feel free to make an appointment or to drop in at other times if these hours are not convenient for you. If you drop in at a bad time, we can schedule an appointment for later. The best way to communicate with the instructor outside of class is via electronic mail. Send email to parker@reed.edu. [Note: Do not send email to jparker or parkerj, these go to other people!
Exams: There will be a mid-term exam and a final exam for this course. Both exams will be essay-oriented and may be partially or wholly take-home.
Term Paper: A term paper is due at 3pm on Friday, May 9. There is no fixed length for the paper; the proper length is guided by your subject matter and methodology. However, it seems unlikely that a paper of less than about 8 double-spaced pages would cover a substantive topic excellently. A 2-3 page proposal of a topic for the paper is due in class on Friday, March 7. I will try to schedule a short paper conference with each student during the week of March 10th to discuss your proposed topics and make suggestions for continuing your research. I would be happy to read preliminary paper drafts and provide comments. However, because of senior thesis reading, I would have to receive a draft no later than Friday, April 25 in order to assure that I could get comments back to you before the end of classes.
There are many directions that you might go with the paper. The only requirement is that the subject be related to the materials of this course and that you use sound economic reasoning in developing an argument or analysis. Case studies are one highly accessible model for course papers. You could choose a product or process innovation and research how it came about, using the theories developed in the course to assess how the economic environment influenced its development. Policy essays are another option. You could choose an actual or hypothetical policy change and assess the economic arguments relating to the issue. Country studies are another suitable alternative: examining the mix of technology and other economic policies followed by a particular country during a period of time and assessing the impact of these policies on technological innovation and growth. Empirical studies are unusually ambitious for course papers, but those with econometric skills may wish to explore one of the several data sets that are available on R&D, productivity, patents, and other related subjects. If you want to browse a bit to look for ideas, you could look at recent issues of Research Policy or the annual NBER collection Innovation Policy and the Economy.
Whatever your inclination, you should confer with the instructor in person or by email about the feasibility of topics that interest you. He may be able to help you refine your topic to make it both doable and interesting, or to guide you toward literature, data, or other useful resources.
Experiment: We will perform an extended experiment on technological innovation outside of class, in which all students will participate. Participation involves making decisions about R&D policy for a hypothetical firm that you manage. Each day before noon, you will receive an update via the Internet or electronic mail. You will be asked to respond to this information by making decisions about your R&D policies for the next period. These decisions must be submitted electronically by 6am the following day. (Weekends will count as a single day: decisions are due by 6am, Monday through Saturday, with information sent out by noon that day.) Failing to respond will not be penalized directly, but will be interpreted as undertaking no new R&D in the period, which may be a risky innovation strategy. The experiment will continue for at least several weeks. There will be a short written assignment or perhaps an exam question relating to the experiment.
Grades will be based on all information the instructor has about your level of understanding of the subject matter. This includes evidence from exams, papers, class and experiment participation, and individual discussions. Evidence of preparation for class conferences will carry significant weight in grading.
We will read a fairly large amount of material from a variety of sources. Much of the reading is from books. We will read three or more chapters from each of the following books:
Any of these can be ordered from the Reed Bookstore or from online sources if you want your own copy. All cost less than $50 (new) and most are under $30. Multiple copies of all of these books will be on reserve in the Reed Library. We will make arrangements to have photocopied or scanned chapters of scarce books available as necessary.
Beyond these books, there are many other readings from books and journals that are either assigned or recommended. All of these will be available in printed form through library reserves. Some readings are available through online sources and have links from the reading list.
Most class sessions will be true conferences, not the "interruptible lecture" format that is common in some economics classes. This format presupposes that all students have read the required materials and are prepared to participate in the discussion. A considerable part of your course grade will be based on the effectiveness of your contributions to class discussions.