Haaland, Jan I.; Kind, Hans Jarle - C.E.P.R. Discussion Papers - 2004
each government may grant R&D subsidies to the domestic firm. We show that it is optimal for a government to provide higher … R&D subsidies the lower the level of trade costs, even if the firms are independent monopolies. If firms produce … necessarily welfare-maximizing. The optimal coordinated policies may imply an asymmetric outcome with R&D subsidies to only one of …