Benefits of Supporting R&D Activities by Governments
(Regional) governments often support local companies to do R&D and innovate with subsidies, tax reduction. They are hoping that this will have a positive return for the country / region, like more employment, new investments, etc.
But more and more companies develop products in one country / region and produce them in another. So the benefits from the R&D support go to another country / region than the one that made the investments.
Q: Why should governments still invest in local R&D activities of companies, if other countries / regions get the benefits?