Leahy, Dermot; Neary, J Peter - In: Oxford Economic Papers 51 (1999) 1, pp. 40-59
In this paper, the authors consider the case for subsidies toward firms which generate R&D spillovers in open economies. They show that, in the presence of strategic behavior by firms, many expected results are overturned. Local R&D spillovers to other domestic firms may justify an R&D tax...
