Publicação
Industrial Policy and Firm Heterogeneity
| Resumo: | Our concern is about a firm-specific industrial policy. When R&D subsidies or taxes are differentiated among firms, the question arises which firms in an industry should receive such support. We analyze a situation where firms differ in their R&D to in two distinct ways. They differ both in the costs of performing R&D activities and in the output obtained from such activities. The introduction of several domestic firms creates a corrective motive for government intervention with the firms' R&D activities in addition to Spencer and Brander's strategic motive. We find that the optimal firm-specific industrial policy. is affected differently by the two sources of firm heterogeneity. Another finding is that a change in a firm's R&D productivity has an ambiguous effect on the optimal policy towards the firm. |
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| Autores principais: | Barros, Pedro Pita |
| Outros Autores: | Nilssen, Tore |
| Assunto: | Firm heterogeneity Industrial policy R&D |
| Ano: | 1998 |
| País: | Portugal |
| Tipo de documento: | working paper |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Nova de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório Institucional da UNL |
| Resumo: | Our concern is about a firm-specific industrial policy. When R&D subsidies or taxes are differentiated among firms, the question arises which firms in an industry should receive such support. We analyze a situation where firms differ in their R&D to in two distinct ways. They differ both in the costs of performing R&D activities and in the output obtained from such activities. The introduction of several domestic firms creates a corrective motive for government intervention with the firms' R&D activities in addition to Spencer and Brander's strategic motive. We find that the optimal firm-specific industrial policy. is affected differently by the two sources of firm heterogeneity. Another finding is that a change in a firm's R&D productivity has an ambiguous effect on the optimal policy towards the firm. |
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