The impact of government subsidies on private R\&D investment in different markets
type: Item
instance of: scholarly article
title: The impact of government subsidies on private R\&D investment in different markets
zbMATH Open document ID: 1459.91032
DOI: 10.1155/2020/2021865
author: Jinglve Wang
author: Guohua Zhou
published in: Mathematical Problems in Engineering
publication date: 2020-07-23T00:00:00Z
review text: Summary: 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.
Mathematics Subject Classification ID: 91A80
Mathematics Subject Classification ID: 91B38
Mathematics Subject Classification ID: 91B54
zbMATH DE Number: 7224345
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2020/2021865
OpenAlex ID: W3039285054
cites work: Efficient feed-in-tariff policies for renewable energy technologies
cites work: Distributed decision making----a unified approach.
cites work: Dynamic model of R\&D, spillovers, and efficiency of Bertrand and Cournot equilibria
cites work: Recovery decisions of a producer in a legislative disposal fee environment
cites work: Cournot-Bertrand comparison in a mixed oligopoly
Recommended article: Government preference and the optimal choice of R\&D subsidy policy: innovation subsidy or product subsidy?
Recommended article: The long-run growth effects of R \& D subsidies
Recommended article: R\&D subsidies and foreign direct investment
Recommended article: THE CLEANSING EFFECT OF R&D SUBSIDIES
Recommended article: Market structure and endogenous productivity growth: how do R\& D subsidies affect market structure?
Recommended article: Government strategy choice of subsidy policy for upstream R\&D in industry chains
Recommended article: Occupational choice and entrepreneurship: effects of R\&D subsidies on economic growth
description: scientific article; zbMATH DE number 7224345