Takalo, Tuomas; Tanayama, Tanja; Toivanen, Otto - In: International Journal of Industrial Organization 31 (2013) 5, pp. 634-642
We extend the theoretical basis of the empirical literature on the effects of R&D subsidies by providing an estimable model of strategic interaction among subsidy applicants, and public and private sector R&D financiers. Our model incorporates fixed R&D cost and a cost of external finance. We...