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International R&D Tournaments and Industrial Policy


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  • Zhou, Haiwen

    (Old Dominion University)

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    This paper provides a unified approach to study the influence of uncertainty and spillovers on the direction of R&D policy when firms engage in international R&D competition. When the reward to the winner is exogenously given, it is shown that whether a government will tax or subsidize its firm is sensitive to the type of uncertainty that characterizes the R&D process. When the reward to the winner is endogenously determined by R&D spending, the direction of optimal policy is not only sensitive to the type of uncertainty, but also sensitive to the degree of spillovers.

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    Bibliographic Info

    Article provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.

    Volume (Year): 22 (2007)
    Issue (Month): ()
    Pages: 320-338

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    Handle: RePEc:ris:integr:0396

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    Related research

    Keywords: International R&D tournaments; Industrial policy; Uncertainty; Spillovers;

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