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Cooperative R&D and strategic trade policy
Author(s) -
DeCourcy Julie
Publication year - 2005
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.0008-4085.2005.00292.x
Subject(s) - subsidy , order (exchange) , government (linguistics) , economics , welfare , microeconomics , finance , market economy , linguistics , philosophy
. 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