The Economics of State Aid Control: Some Remarks

Mathias Dewatripont, Nov 01, 2006

This short comment discusses the rationale for State aid control at the level of the European Community and then turns to the State Aid Action Plan and its application to aid to Research, Development, and Innovation. It discusses the merits of a refined economic approach for better targeting¬Ě purposes and stresses the need for State aid control to focus on preventing an excessive reliance on an innovation-based industrial policy.

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