Atallah, Gamal - Volkswirtschaftliche Fakultät, … - 2007
that conditional subsidies can yield the same level of innovation and welfare as unconditional subsidies. However, when the … probability of success is sufficiently low (be it endogenous or exogenous), conditional subsidies yield suboptimal levels of … innovation and welfare. When the firm chooses the probability of success, conditional subsidies can have the advantage of a lower …