Effect of government R&D subsidies on firms’ innovation in China
Effect of government R&D subsidies on firms’ innovation in China
Wu Ruirui(School of management, University of Science and Technology of China, Hefei, People’s Republic of China); Liu Zhiying(School of management, University of Science and Technology of China, Hefei, People’s Republic of China); Ma Chaoliang(Postdoctoral Workstation, China Development Institute, Shenzhen, People’s Republic of China); Chen Xiafei(School of management, Zhejiang University, Hangzhou, People’s Republic of China)
28권 1호, 42~59쪽
초록
This study investigates the effects of R&D subsidies on firms’ innovation using panel data of Chinese listed firms from 2008 to 2013. Through propensity score matching method, we determine that recurrent, high-tech firms are more likely to receive public grants. Moreover, firms affiliated with higher-level governments and located in minimally marketised regions have a higher probability of receiving government financial support. China's state intervention to correct market failure related to firms’ R&D activity is confirmed to be reasonable in an observable time given an instantaneous additionality effect. However, the stimulation effect of R&D subsidies on innovation outputs has not been verified. Results obtained through a continuous matching method show no optimal amount of R&D subsidies for firms in China, but a declining yet a positive marginal effect of treatment has been identified given an increase in the amount of R&D subsidies.
Abstract
This study investigates the effects of R&D subsidies on firms’ innovation using panel data of Chinese listed firms from 2008 to 2013. Through propensity score matching method, we determine that recurrent, high-tech firms are more likely to receive public grants. Moreover, firms affiliated with higher-level governments and located in minimally marketised regions have a higher probability of receiving government financial support. China's state intervention to correct market failure related to firms’ R&D activity is confirmed to be reasonable in an observable time given an instantaneous additionality effect. However, the stimulation effect of R&D subsidies on innovation outputs has not been verified. Results obtained through a continuous matching method show no optimal amount of R&D subsidies for firms in China, but a declining yet a positive marginal effect of treatment has been identified given an increase in the amount of R&D subsidies.
- 발행기관:
- 기술경영경제학회
- 분류:
- 과학기술학