This paper reconsiders the explanation of R&D subsidies by Spencer and Brander (1983) and others by allowing firms to license their innovations and to pool their R&D investments. We show that in equilibrium R&D joint ventures are formed and licensing occurs in a way that eliminates the strategic...

The role of geographical proximity in fostering connections and knowledge flows between innovative actors ranks among the most controversial themes in the research of innovation systems, regional networks and new economic geography. While there is ample empirical evidence on the constituent...

Transfer and diffusion of knowledge and technology is a key condition for the development of innovation. In practice, they take place at the interface between science and business, which makes the level of innovation and development of a given economy depend on the effectiveness and efficiency...