Researchers have found that inventors may receive bonuses around the time of patent applications because they can take knowledge from one company to a rival one. Companies compete for R&D workers who can share new knowledge with their new employer. The type of knowledge transfer and R&D investments can affect the likelihood of bonus pay. Tax incentives and subsidies can help correct under-investment in capital. When market competition is high, bonus pay is the best incentive, while subsidies to capital investment can lead to overinvestment. When positive knowledge sharing is more important, subsidies to capital investment are the best option for optimal investment levels.