Atallah, Gamal - In: Economics of Innovation and New Technology 23 (2014) 2, pp. 179-214
This paper introduces a new type of R&D subsidy, which is conditional on the success of the R&D project. In a three …-stage model, the government chooses a subsidy(ies), a monopolist chooses R&D effort which determines the size or the probability … of success of the R&D project, and the firm chooses output. It is found that conditional subsidies can yield the same …