showing the conditions under which subsidies create positive additionality, we provide guidance to policymakers on how to …Current literature on the impact assessment of government innovation subsidies is mainly empirical driven and lacks an … overarching theoretical model to explain the conditions under which government subsidies create positive additionalities on …

We provide evidence that subsidy types that are identical in monetary terms differ in their behavioral responses and … than under grant. Both subsidy types are essentially very similar, only the mechanism of the subsidy application is … substantial impact on the effectiveness of subsidies. Applying our findings, governments can ‘nudge' the investors to support …

problem of finding optimal tax and subsidy schemes in a model in which growth is endogenously sustained by risky innovation …