In contrast to the standard literature, we show that the presence of spillovers may justify temporarily restricting the inflow of foreign direct investment. Our argument is based on two stylized features of spillovers: first, technology transfers --- and subsequent spillovers --- are limited by...

Using detailed firm-level data, we analyze Spain’s Pharmaceutical Research Program, and find differences between the ex ante announced evaluation criteria and their ex post implementation. By studying the program’s implementation, we also uncover that the apparent discrimination against...