Economics of the R&D Support Process
AbstractEssentially all governments of developed, and those of several developing countries resort to policies that seek to increase private R&D investments. There are good theoretical arguments why this should be so. Despite a large literature on the economics of R&D in general and on the effects of R&D subsidies and tax credits in particular, our understanding of how such support mechanisms work is still limited. In this paper, I describe a research project that seeks to further our knowledge of the effects of R&D and R&D subsidies by modeling carefully the actions of different participants in the R&D subsidy process – the firms that may or may not apply for subsidies and then invest in R&D, and the government agency deciding on whether or not to grant subsidies and if so, how large the subsidies should be.
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Bibliographic InfoArticle provided by Intersentia in its journal Review of Business and Economic Literature (ReBEL).
Volume (Year): LV (2010)
Issue (Month): 3 (September)
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Web page: http://www.rebel-journal.org/
applications; r&d investment; r&d support; selection; subsidies; treatment program; welfare;
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