We study a two-stage R&D project with an abandonment option. Two types of uncertainty influence the decision to start R&D. Demand uncertainty is modelled as a lottery between a proportional increase and decrease in demand. Technical uncertainty is modelled as a lottery between a decrease and...

We present a theoretical framework which allows for the comparison of the effectiveness of tax measures, loans and funding, in supporting industry-oriented research. We estimate for each of the instruments the exact contribution required by a firm to decide on investing in R&D, given the costs...

Regions vary strongly according to the participation of firms in R&D activity. By linking data on R&D activity at the firm level with GIS based data on economic, and other location features of zones we are able to investigate the impact of local factors on R&D involvement for various types of...