Darai, Donja; Grosser, Jens; Trhal, Nadja - Institut für Volkswirtschaftslehre, … - 2009
This paper studies the effects of patents and subsidies on R&D investment decisions. The theoretical framework is a two-stage game consisting of an investment and a market stage. In equilibrium, both patents and subsidies induce the same amount of R&D investment, which is higher than the...