The theory of strategic trade policy yields ambiguous recommendations for assistance to exporting firms in oligopolistic industries. However, some writers have suggested that investment subsidies are a more robust recommendation than export subsidies. We show that, although ambiguous in...

We examine optimal industrial and trade policies in a series of dynamic oligopoly games in which a home and a foreign firm compete in R & D and output. Alternative assumptions about the timing of moves and the ability of agents to commit intertemporally are considered. We show that the home...