growth. In this paper we study the effects of tax and subsidy policies on entrepreneurs' choice of riskiness of an innovation … project and on their mode of commercializing the innovation (market entry versus sale). Limited loss offset provisions in the … fundamental policy trade-off between the declared goals of promoting employment and innovation in small, entrepreneurial firms …

We develop a theory of innovation for entry and sale into oligopoly, and show that inventions of higher quality are …

' signaling-driven investment, despite the risk of buying a bad innovation. We finally show at what point the presence of active …