regime. An R&D subsidy is found suboptimal under symmetric information, whereas it can be optimal given information asymmetry …. This allows us to derive a combination of patent protection and R&D subsidy that yields the first-best results under …

game theory of the firm. A theoretical case for picking winners through a preferential innovative policy is discussed in a …

signaling theory, we conceptualize the award of a subsidy as a pointing signal (i.e., indicating a quality attribute that … distinguishes the signaler from its competitors), and the monetary amount raised through a subsidy as an activating signal (i … differently: while academic partners attend to pointing signals only (sent by the award of a selective subsidy), corporate …