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The Impact of Government Subsidies on Private R&D Investment in Different Markets
Joint Authors
Source
Mathematical Problems in Engineering
Issue
Vol. 2020, Issue 2020 (31 Dec. 2020), pp.1-21, 21 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2020-07-04
Country of Publication
Egypt
No. of Pages
21
Main Subjects
Abstract EN
In contrast to the econometric models that have been commonly used throughout a large portion of the literature, we develop six game-theoretic models to analyze governmental subsidy strategies in different market environments and to investigate the question of whether government subsidies crowd in or crowd out private investment in R&D activities.
Based on realistic situations, we classify governmental subsidy strategies into three types, namely, no subsidy provided, subsidies provided based on the price of the end products, and subsidies provided based on the cost of R&D.
In addition, according to whether competition exists in the market, we classify markets into monopoly markets and duopoly markets.
Our research shows (a) that the relationship between government subsidies and private R&D investment is deeply impacted by the form of the subsidies used; (b) that the characteristic value of the R&D project and the competitive environment of the market are the two key factors that should be considered when governments decide which form of subsidy to employ; and (c) the optimal amount for each type of subsidy.
American Psychological Association (APA)
Wang, Jinglve& Zhou, Guohua. 2020. The Impact of Government Subsidies on Private R&D Investment in Different Markets. Mathematical Problems in Engineering،Vol. 2020, no. 2020, pp.1-21.
https://search.emarefa.net/detail/BIM-1193652
Modern Language Association (MLA)
Wang, Jinglve& Zhou, Guohua. The Impact of Government Subsidies on Private R&D Investment in Different Markets. Mathematical Problems in Engineering No. 2020 (2020), pp.1-21.
https://search.emarefa.net/detail/BIM-1193652
American Medical Association (AMA)
Wang, Jinglve& Zhou, Guohua. The Impact of Government Subsidies on Private R&D Investment in Different Markets. Mathematical Problems in Engineering. 2020. Vol. 2020, no. 2020, pp.1-21.
https://search.emarefa.net/detail/BIM-1193652
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1193652