Gretz, Richard T.; Lewer, Joshua J.; Scott, Robert C. - In: The Journal of Economics 36 (2010) 1, pp. 79-104
This paper clarifies the role of passive incentives and targeted government R&D support programs in R&D policy. Using a principal-agent framework, a theoretical model of firm R&D behavior is developed, and suggests that without targeted R&D support programs many R&D projects with the greatest...