Darai, Donja; Großer, Jens; Trhal, Nadja - 2009
This paper studies the effects of patents and subsidies on R&D investment decisions. The theoretical framework is a two …-stage game consisting of an investment and a market stage. In equilibrium, both patents and subsidies induce the same amount of R&D … investment, which is higher than the investment without governmental incentives. In the first stage, the firms can invest in a …