production of high-tech goods by production or R&D-subsidies in the short and long run. The difficulties for the policy-makers in … designing a subsidy scheme that succeeds in expanding aggregate high-tech production involve taking into account the trade …-off between resources used in R&D and production of high-tech goods, the relative impact of different R&D activities on …

production costs in an imperfectly competitive product market. This is done without invoking any agency problem or other form of …