Subsidizing National Champions: An Evolutionary Perspective
A national-champions-related industrial policy has become (again) en vogue among European politicians. Against this background, our work orders different types of national champions along the industry lifecycle. Different types of locally bound externalities appear along the lifecycle. In a simple model, we show that it may be efficient to subsidize innovative firms in their early stages or to protect mature firms from competition to appropriate these externalities. However, non-benevolent politicians may not choose efficient policies. Real-world examples indicate that politicians tend to concentrate on externalities at the mature stage of the lifecycle. These externalities may be transitory or at the expense of foreign country consumers.
|Date of creation:||2008|
|Date of revision:|
|Contact details of provider:|| Postal: Poschingerstrasse 5, 81679 Munich|
Phone: +49 (89) 9224-0
Fax: +49 (89) 985369
Web page: http://www.cesifo-group.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dasgupta, Partha, 1988. "The Welfare Economics of Knowledge Production," Oxford Review of Economic Policy, Oxford University Press, vol. 4(4), pages 1-12, Winter.
- Karen Helene Midelfart-Knarvik & Henry G. Overman, 2002. "Delocation and European integration: is structural spending justified?," Economic Policy, CEPR;CES;MSH, vol. 17(35), pages 321-359, October.
- Barbara J. Spencer & James A. Brander, 1983.
"International R & D Rivalry and Industrial Strategy,"
Review of Economic Studies,
Oxford University Press, vol. 50(4), pages 707-722.
- Barbara J. Spencer & James A. Brander, 1983. "International R&D Rivalry and Industrial Strategy," NBER Working Papers 1192, National Bureau of Economic Research, Inc.
- Barbara J. Spencer & James A. Brander, 1982. "International R&D Rivalry and Industrial Strategy," Working Papers 518, Queen's University, Department of Economics.
- Bardhan, Pranab K, 1971.
"On Optimum Subsidy to a Learning Industry: An Aspect of the Theory of Infant-Industry Protection,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 12(1), pages 54-70, February.
- P. K. Bardhan, 1967. "On Optimum Subsidy to a Learning Industry: An Aspect of the Theory of Infant Industry Protection," Working papers 10, Massachusetts Institute of Technology (MIT), Department of Economics.
- Bruce Fallick & Charles A. Fleischman & James B. Rebitzer, 2006.
"Job-Hopping in Silicon Valley: Some Evidence Concerning the Microfoundations of a High-Technology Cluster,"
The Review of Economics and Statistics,
MIT Press, vol. 88(3), pages 472-481, August.
- Fallick, Bruce & Fleischman, Charles A. & Rebitzer, James B., 2005. "Job-Hopping in Silicon Valley: Some Evidence Concerning the Micro-Foundations of a High Technology Cluster," IZA Discussion Papers 1799, Institute for the Study of Labor (IZA).
- Bruce Fallick & Charles A. Fleischman & James B. Rebitzer, 2005. "Job-Hopping in Silicon Valley: Some Evidence Concerning the Micro-Foundations of a High Technology Cluster," Labor and Demography 0512004, EconWPA.
- Bruce Fallick & Charles A. Fleischman & James B. Rebitzer, 2005. "Job-Hopping in Silicon Valley: Some Evidence Concerning the Micro-Foundations of a High Technology Cluster," Economics Working Paper Archive wp_432, Levy Economics Institute.
- Bruce C. Fallick & Charles A. Fleischman & James B. Rebitzer, 2005. "Job-hopping in Silicon Valley: some evidence concerning the micro-foundations of a high technology cluster," Finance and Economics Discussion Series 2005-11, Board of Governors of the Federal Reserve System (U.S.).
- Bruce Fallick & Charles A. Fleischmann & James B. Rebitzer, 2005. "Job Hopping in Silicon Valley: Some Evidence Concerning the Micro-Foundations of a High Technology Cluster," NBER Working Papers 11710, National Bureau of Economic Research, Inc.
- Warlters, Michael & Auriol, Emmanuelle, 2005. "The marginal cost of public funds in Africa," Policy Research Working Paper Series 3679, The World Bank.
- Paul Seabright, 2005. "National and European Champions - Burden or Blessing?," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 6(2), pages 52-55, 08.
- Xavier Vives, 2001. "Restructuring Financial Regulation in the European Monetary Union," Journal of Financial Services Research, Springer;Western Finance Association, vol. 19(1), pages 57-82, February.
- Ades, Alberto & Di Tella, Rafael, 1997. "National Champions and Corruption: Some Unpleasant Interventionist Arithmetic," Economic Journal, Royal Economic Society, vol. 107(443), pages 1023-42, July.
- Feldman, Maryann P. & Audretsch, David B., 1999.
"Innovation in cities:: Science-based diversity, specialization and localized competition,"
European Economic Review,
Elsevier, vol. 43(2), pages 409-429, February.
- Audretsch, David B & Feldman, Maryann P, 1998. "Innovation in Cities: Science-Based Diversity, Specialization and Localized Competition," CEPR Discussion Papers 1980, C.E.P.R. Discussion Papers.
- Cécile Aubert & Jérôme Pouyet, 2006.
"Incomplete Regulation, Market Competition and Collusion,"
- Cécile Aubert & Jérôme Pouyet, 2006. "Incomplete regulation, market competition and collusion," Review of Economic Design, Springer;Society for Economic Design, vol. 10(2), pages 113-142, August.
- Cécile Aubert & Jerôme Pouyet, 2004. "Incomplete Regulation, Market Competition and Collusion," Working Papers 2004-39, Centre de Recherche en Economie et Statistique.
- Klepper, Steven, 1996. "Entry, Exit, Growth, and Innovation over the Product Life Cycle," American Economic Review, American Economic Association, vol. 86(3), pages 562-83, June.
- Gort, Michael & Klepper, Steven, 1982. "Time Paths in the Diffusion of Product Innovations," Economic Journal, Royal Economic Society, vol. 92(367), pages 630-53, September.
- Edward L. Glaeser & Jed Kolko & Albert Saiz, 2000.
Harvard Institute of Economic Research Working Papers
1901, Harvard - Institute of Economic Research.
- Klepper, Steven, 1997. "Industry Life Cycles," Industrial and Corporate Change, Oxford University Press, vol. 6(1), pages 145-81.
- Damien NEVEN & Paul SEABRIGHT, 1995. "European Industrial Policy: The Airbus Case," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 9509, Université de Lausanne, Faculté des HEC, DEEP.
- Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1988.
"Industrialization and the Big Push,"
NBER Working Papers
2708, National Bureau of Economic Research, Inc.
- Laffont, Jean-Jacques & Tirole, Jean, 1993. "Cartelization by Regulation," Journal of Regulatory Economics, Springer, vol. 5(2), pages 111-30, June.
- repec:dau:papers:123456789/13654 is not listed on IDEAS
- Mathias Dewatripont & Paul Seabright, 2006.
""Wasteful" public spending and state aid control,"
ULB Institutional Repository
2013/165574, ULB -- Universite Libre de Bruxelles.
- Mariagiovanna Baccara & Ronny Razin, 2007. "Bargaining Over New Ideas: The Distribution of Rents and the Stability of Innovative Firms," Journal of the European Economic Association, MIT Press, vol. 5(6), pages 1095-1129, December.
When requesting a correction, please mention this item's handle: RePEc:ces:ceswps:_2380. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Klaus Wohlrabe)
If references are entirely missing, you can add them using this form.