This article considers a sequential investment project which starts with a product innovation phase, and subsequently, once R&D is completed, a production phase. The investment decisions are the timing and size of the R&D investment, and the size of the production capacity. We show that from a social welfare perspective the firm starts the R&D project too late and installs a too low production capacity. We find that subsidization of the R&D investment is more effective in reducing this welfare loss than subsidization of the production capacity. In fact, we reach the same conclusion under both isoelastic and linear demand.

中文翻译：

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关于对研发和产能投资的补贴


本文考虑了一个连续的投资项目，该项目从产品创新阶段开始，然后，一旦研发完成，就开始生产阶段。投资决策是研发投资的时间和规模，以及生产能力的规模。我们从社会福利的角度表明，公司开始研发项目的时间太晚，并且安装的生产能力过低。我们发现，对研发投资的补贴比对生产能力的补贴更有效地减少这种福利损失。事实上，我们在等弹性和线性需求下都得出了相同的结论。