In this paper we consider a regulated monopoly that can pad its costs to increaseits cost reimbursement. Even while padding is ineácient the optimal incentivescheme tolerates some padding of costs to reduce the information rents paid tolow cost types. It is shown that high cost ßrms pad costs...

The paper deals with the significant impact of location on innovation activity that has been found in many empirical studies. Main elements of such an explanation are the specific problems of a division of innovative labor. Based on an outline of these issues the concept of a regional innovation...

This paper investigates interregional differences in cooperative behavior ofmanufacturing establishments in the field of research and development (R&D).The empirical analysis for eleven European regions reveals a number ofsignificant differences between these regions in the propensity to...