The Research Department “Economics of Innovation and Industrial Dynamics” investigates the behaviour of firms under dynamic market conditions. It identifies the challenges faced by firms and by economic policy-makers as a consequence of European unification, global integration of markets, and technological development. It also analyses and assesses government economic policy and business strategies, and proposes new courses of action. The Research Department particularly focuses on firm innovation, market entries and exits, business growth and decline, and on company transformation. Relying on approaches from economics and business management, the Research Department pursues cooperation with other researchers in fields such as law and social sciences.