R&D Subsidies and Multinational Firm Ownership
Global Economy Journal (Berkeley Electronic Press), Vol. 7, No. 1, 2007
Posted: 15 Jan 2011
Date Written: 2007
Abstract
Most industrialized countries subsidize private sector R&D, even under some circumstances when the firm is owned by foreigners. The present paper, using a simple theoretical analysis of a monopoly firm selling only to the U.S. market, argues that such subsidies are welfare enhancing - as long, of course - as the funding agency chooses the projects it funds wisely. The paper suggests that a subsidy rate of 50% might be warranted under some circumstances.
Keywords: ATP, Advanced Technology Program, NIST, National Institute of Standards and Technology
Suggested Citation: Suggested Citation
Gretz, Richard T. and Highfill, Jannett and Scott, Robert C., R&D Subsidies and Multinational Firm Ownership (2007). Global Economy Journal (Berkeley Electronic Press), Vol. 7, No. 1, 2007, Available at SSRN: https://ssrn.com/abstract=1739995
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