contribute by i) developing a comprehensive theory on the effects of winning non-innovative public procurement tenders as a firm … and ii) empirically testing our theory by combining representative German data with two-way fixed effect difference … results confirm our theory and empirically hold at the level of the individual firm and the German enterprise sector. …

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 …

understand how firms react to each type of subsidy. In a three-stage game, the government chooses production and innovation … subsidy reduces the cost of the innovation subsidy, and vice versa. The optimal production subsidy is U-shaped with respect to … spillovers, while the innovation subsidy is increasing in spillovers. The production subsidy is higher for very low spillovers …

subsidy rates. Japanese subsidies to R&D usually benefit Americans due to an increase in product variety. However, because …