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2021 | OriginalPaper | Chapter

A Note on the Role of Government Incentives in Promoting Innovations

Author : Javier Ignacio García-Fronti

Published in: Intelligent and Complex Systems in Economics and Business

Publisher: Springer International Publishing

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Abstract

This work aims to model the alternatives of government incentives for promoting innovation with social impact. Firstly, it analyses the R&D performed by a small technological firm and, secondly, the subsequent production to enter the market done by a big producer. This two companies must agree on how to share the output; it is a game between these two players, with a bigger negotiation power held by the big producer. If the big company want a big share, the government could incorporate incentives through push and pull subsidies to compensate the small one. Each one of these strategies has advantages and limitations in its application, and consequently, this paper proposes to use hybrid contracts, where the government can articulate the advantages of both subsidies.

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Metadata
Title
A Note on the Role of Government Incentives in Promoting Innovations
Author
Javier Ignacio García-Fronti
Copyright Year
2021
Book
Intelligent and Complex Systems in Economics and Business

Print ISBN: 978-3-030-59190-8

Electronic ISBN: 978-3-030-59191-5

Copyright Year: 2021

DOI
https://doi.org/10.1007/978-3-030-59191-5_3

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