摘要
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This study establishes a third-country
trade model where firms from developing and developed countries
invest into product R&D under their governments’ subsidisation policies to analyse
firms’ quality–price choices and
governments’ optimal product R&D investment policies. We show that a rise
in the developing (developed) country’s product R&D subsidy makes
firms’ quality–price competition
more (less) intense and that the governments’ optimal product
R&D policies, depending on the features of their quality and demand
functions, can both be subsidies even under Bertrand price competition,
contrary to the findings of previous studies.
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