investments. -- subsidies ; innovation ; asymmetric information ; signaling …Government subsidies for R&D are intended to promote projects with high returns to society but too little private … a simple signaling model with different types of R&D projects to capture this phenomenon. In a setup where the subsidy …

aggressive development of a basic innovation by better informed venture-backed firms is used as a signaling device to enhance the … signaling driven overinvestment, despite the risk of buying a non-productive innovation. Therefore, to exist in equilibrium … sale price of the innovation. We then show that incumbents can undertake early, preemptive, acquisitions to prevent such …

' signaling-driven investment, despite the risk of buying a bad innovation. We finally show at what point the presence of active …

This paper seeks to estimate the effect of a European policy that subsidizes innovation investments. By carefully …