This paper studies the interaction between production subsidies and innovation subsidies. We develop a model which allows us to calculate the socially optimal subsidies (and how they vary with changes in the economic environment), and to understand how firms react to each type of subsidy. In a...

This paper studies the effect of tariffs on R&D expenditures when there are R&D spillovers between firms. We consider a three-stage game, where the government determines the amount of the tariff and R&D subsidy in the first stage, firms choose their R&D expenditures in the second stage, and...

This paper studies the interaction between production subsidies and innovation subsidies. We develop a model which allows us to calculate the socially optimal subsidies (and how they vary with changes in the economic environment), and to understand how firms react to each type of subsidy. In a...