Abstract :
Not everybody agrees with the concept of industrial financial incentives. Detractors fall into two camps: those who say that they don´t work and those who accept their effectiveness but insist that they offer unfair advantages over the competition. Incentives take many forms, including grants, soft loans, fiscal and social security concessions, local rates waivers, job premiums, equity participation and contingent guarantees. This article concentrates on grants and loans, which are by far the most common forms of inducement to the private sector. The article looks at such incentives in R&D, demonstration programmes, and continuing vocational training.<>
