Abstract We analyze how the cost-effectiveness of R&D influences the incentives for governments to impose export subsidies. Governments first impose an export subsidy, or a tax. After observing export policy, firms invest in cost reducing R&D and subsequently compete in the market. Governments...

Summary Porter's hypothesis that a national leadership in environmental policy can increase the international competitiveness of domestic industries is analyzed in a two-period model with Cournot competition. It is assumed that an environmentally friendly technology leads to a decrease of unit...

Purpose – The purpose of this paper is to discuss the optimal policy settings of the home government for any combination of strategic variables adopted by home and foreign firms under Brander and Spencer’s third-market model framework. Design/methodology/approach – This paper follows all...

Purpose – The purpose of this paper is to postulate the impact of preferential trade agreements (PTAs) on internationalization strategies of member countries’ firms. The study also aims to triangulate the proposed model using empirical data from PTA partner economies....

Abstract This paper assesses firm-level effects of the single largest investment subsidy programme in Germany. The analysis considers grants allocated to firms in East German regions over the period 2007 to 2013 under the regional policy scheme Joint Task ‘Improving Regional Economic...

Purpose The purpose of this paper is to analyse the economic and political conditions that could explain why the governments in developed economies have intervened in the automobile industry. The author identifies the main reasons and the shortcomings of these public interventions....

Purpose – The purpose of this paper is to examine changes in manufacturing agglomeration in a small open economy over the last decade. This is done during a time when manufacturing in most developed countries is in relative decline. Design/methodology/approach – This work adapts the...

Purpose – High-growth firms (HGFs) have attracted an increasing amount of attention from researchers and policymakers, and the Eurostat-Organisation for Economic Co-operation and Development (OECD) definition of HGFs has become increasingly popular. The paper aims to discuss this issue....

Purpose – The purpose of this paper is to identify the obstacles encountered by current and potential entrepreneurs. The authors explore the areas associated with starting and running a business in which entrepreneurs find difficulties. Furthermore, the authors explore which entrepreneurs...

Purpose The purpose of this paper is to examine the issue of “formalization” in business networks as an instrument of industrial policy. Formalization in business networks is not a debated topic but it can affect organizational and inter-organizational dynamics considerably. The aim of the...