19-677 Managerial Economics and Innovation Strategy in the AI Era
6 units, Carnegie Mellon University
This course will introduce students to the economic models that underpin innovation strategy with a special focus on the implications of the ongoing artificial intelligence revolution for technology management. We will emphasize the application of frameworks from the economics of technical change and management strategy to answer two key questions: How do firms capture value from innovation, and how does AI change these strategies? Traditional innovation commercialization strategies must adapt to the rapid decreases in the costs of idea generation and acceleration of testing offered by AI tools. We will discuss the critical factors that determine the optimal commercialization strategy and what firms or assets are positioned to capture value from innovation, and we will explore how this varies by industry and technology characteristics. We will also consider how successful incumbent firms can maintain their market position in the face of new technologies and potential competitors. The concepts introduced in the course will benefit students in future professional roles such as a manager in a technology-intensive firm, an engineer or scientist interested in new product development/R&D, an analyst or investor in technology markets, and a management consultant specializing in technology-intensive industries. MS ETIM students will be given priority in enrollment. Seniors and juniors with permission of instructor.
Prerequisites: none listed
Offered: Fall 2026, Fall 2025
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