enables the model to replicate the empirically rather moderate correlation between the R&D innovation probabilities of …

, incumbents. With these models at hand, we provide new insights on the interplay of innovation dynamics and fiscal policy …

, incumbents. With these models at hand, we provide new insights on the interplay of innovation dynamics and fiscal policy. …

development (R&D) by entrants and, if applicable, incumbents. Regardless of the innovation structure, an increase in consumption … economic growth alongside a welfare loss in the homogeneous innovation model. However, in the heterogeneous innovation model … higher welfare. Only higher capital investment subsidies lead to jointly higher growth and welfare in both innovation models …