Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/63003
Authors: 
Barros, Pedro P.
Nilssen, Tore
Year of Publication: 
1999
Series/Report no.: 
Memorandum, Department of Economics, University of Oslo 1999,02
Abstract: 
Our concern is with a firm-specific industrial policy. When R&D subsidies or taxes are differentiated among firms, the question arises which firms in an industry should receive such support. We analyze a situation where firms differ in their R&D technologies in two distinct ways: They differ both in the costs of performing R&D activities and in the output obtained from such activities. We find that the optimal firm-specific industrial policy is affected differently by the two sources of firm heterogeneity. Furthermore, a change in a firm's R&D productivity has an ambiguous effect on the optimal policy towards the firm.
Subjects: 
firm heterogeneity
industrial policy
R&D
JEL: 
F13
L52
O31
Document Type: 
Working Paper

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