Italy

  • Influencing Innovation: Government’s Role in Subsidizing R&D

    Influencing Innovation: Government’s Role in Subsidizing R&D

    Firms often underinvest in research and development (R&D) when there is no government intervention. There are many uncertainties and risks that discourage firms from investing in R&D, which slows the pace of innovation. To address this problem, governments can provide firms with subsidies to incentivize new product creation or improve…