Cooperative R&D and strategic trade policy

Julie DeCourcy

Canadian Journal of Economics, 2005, vol. 38, issue 2, 546-573

Abstract: 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-codes: F13 L24 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (10)

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