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This paper studies the interaction between production subsidies and innovation subsidies. We develop a model which … understand how firms react to each type of subsidy. In a three-stage game, the government chooses production and innovation … crowd out innovation, since they reduce the gain for firms from investing in R&D. On the other hand, providing a production …
Persistent link: https://www.econbiz.de/10012864666
The paper analyzes the profitability of R&D cooperation under asymmetric spillovers. It is shown that a firm prefers R&D competition to RJV cartelization when its own spillover rate is low and the spillover rate of its competitor is high. While it prefers R&D cartelization to RJV cartelization...
Persistent link: https://www.econbiz.de/10010629648
The paper analyzes the profitability of R&D cooperation under asymmetric spillovers. It is shown that a firm prefers R&D competition to RJV cartelization when its own spillover rate is low and the spillover rate of its competitor is high. While it prefers R&D cartelization to RJV cartelization...
Persistent link: https://www.econbiz.de/10005094919