This paper highlights strategic patenting as an underexplored form of rent-seeking behaviors by large firms to gain political benefits. We argue that firms, especially large ones, can strategically time their innovation efforts to create false signals to pursue subsidies; they can achieve this...

Information about the success of a new technology is usually held asymmetrically between the research and development (R&D)-performing firm and potential lenders and investors. This raises the cost of capital for financing R&D externally, resulting in financing constraints on R&D especially for...