Barros, Pedro P.; Nilssen, Tore - 1999
Our concern is with a firm-specific industrial policy. When R&D subsidies or taxes are differentiated among firms, the … activities. We find that the optimal firm-specific industrial policy is affected differently by the two sources of firm … heterogeneity. Furthermore, a change in a firm's R&D productivity has an ambiguous effect on the optimal policy towards the firm. …