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Are R&D subsidies effective? The effect of industry competition

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  • Xin, Xiang

Abstract

This study explores the effect of industry competition on public R&D subsidies' effectiveness. The author finds the non-linear threshold effect of industry competition on R&D subsidies' effectiveness. Specifically, R&D subsidies' effectiveness reaches its peak when industry competition lies between the two estimated thresholds.

Suggested Citation

  • Xin, Xiang, 2018. "Are R&D subsidies effective? The effect of industry competition," Economics Discussion Papers 2018-37, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwedp:201837
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    social status; redistribution; externalities; optimal taxation;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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