This paper presents a theory of government intervention which provides an explanation for "industrial strategy … incentive to try to capture a greater share of rent-earning industries using subsidies, but the subsidy-ridden international …

retaliatory measures from other countries, leading to a wasteful "subsidy race." However, subsidies for sectors with inherent … industry: a key driver of economic growth and innovation with potentially significant learning-by-doing and strategic … of a ``subsidy race'' in the semiconductor industry …

the amount of duty to the amount of the subsidy. This paper examines a generalized model of imperfect competition with … capital subsidies and shows the conditions under which a countervailing duty will offset the effect of the subsidy on exports …. In addition, the paper considers whether profit shifting motives for a subsidy still exist even when this maximum duty is …

In this paper we provide an integrative treatment of the welfare effects of trade and industrial policy under oligopoly …' conjecture. If conjectures are consistent ,free trade is optimal. A tax or subsidy is indicated depending on the sign of the …

instruments: an output subsidy and a lump-sum tax or subsidy. If only one instrument is available, it may be optimal to tax …

Empirical studies have found that enhanced foreign competition can encourage or discourage innovation. To address this …-product firms live forever, and the large firms invest in innovation in order to enlarge their product spans. All firms export. I … show that an increase in the competitiveness of foreign firms can increase or reduce innovation efforts of a large multi …