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2013
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[Journal:] Intereconomics [ISSN:] 1613-964X [Volume:] 48 [Issue:] 2 [Publisher:] Springer [Place:] Heidelberg [Year:] 2013 [Pages:] 99-105
Verlag: 
Springer, Heidelberg
Zusammenfassung: 
The primary aim of the reform of EU rules on research, development and innovation for the period 2014-20 is to ensure that aid stimulates more research and that it is kept to the minimum necessary. This paper develops a simple model that identifies a number of problems in the public funding of private research and demonstrates that the determination of the optimum subsidy for research is a complex task. The results suggest that research subsidies should be allocated in a way that reduces the amount of subsidy per recipient firm and ensures that the subsidies go to more efficient firms.
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