R&D Subsidies and Multinational Firm Ownership

Most industrialized countries subsidize private sector R&D, even under some circumstances when the firm is owned by foreigners. The present paper, using a simple theoretical analysis of a monopoly firm selling only to the U.S. market, argues that such subsidies are welfare enhancing--as long, of course--as the funding agency chooses the projects it funds wisely. The paper suggests that a subsidy rate of 50% might be warranted under some circumstances.

MoreLess

Year of publication:	2007
Authors:	Gretz, Richard ; Highfill, Jannett ; Scott, Robert
Published in:	Global Economy Journal. - International Trade and Finance Association. - Vol. 7.2007, 1, p. 5-5
Publisher:	International Trade and Finance Association
Subject:	ATP \| Advanced Technology Program \| NIST \| National Institute of Standards and Technology

More details

Extent:	application/pdf
Type of publication:	Article
Notes:	oai:bepress.com:gej-1248
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005752598