Cooperative R&D and strategic trade policy |
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Authors: | Julie DeCourcy |
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Institution: | Department of Economics, Trinity University |
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Abstract: | Abstract. In this paper three different cooperative R&D arrangements in a strategic trade policy model are examined. A policy game between two governments is analysed, where each government chooses a particular cooperative R&D policy in order to maximize national welfare. Allowing cooperation in R&D is also compared with the use of R&D subsidies. It is jointly optimal for both governments to allow their firms to participate in the same type of cooperative R&D, and allowing cooperation in R&D can be superior to the use of R&D subsidies. JEL Classification: F13, L24 |
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