TY - JOUR
T1 - Impact of Chinese government subsidies on enterprise innovation
T2 - Based on a three-dimensional perspective
AU - Jia, Lili
AU - Nam, Eunyoung
AU - Chun, Dongphil
N1 - Publisher Copyright:
© 2021 by the authors. Licensee MDPI, Basel, Switzerland.
PY - 2021/2/1
Y1 - 2021/2/1
N2 - Government subsidies are an important means to guide enterprises’ investment in technological innovation. While countries are increasing government subsidies to enterprises, how to effectively leverage government subsidies is a concern of the academic community. At present, scholars’ research conclusions on the impact of government subsidies on enterprise technological innovation include promotion effect, extrusion effect, and mixing effect. Relevant research is often conducted from a single perspective. This paper studies the relationship between government subsidies and enterprise technological innovation, and integrates the macro-institutional environment, meso-market structure, and micro-corporate governance into the same framework. Taking information transmission, software, and information technology service companies as samples, it analyzes the influencing factors of the Chinese government research and development (R&D) subsidies on enterprises’ innovation investment. This paper uses Stata16 software to perform the least square analysis. The research shows that the Chinese government R&D subsidies have a significant incentive effect on corporate technology innovation investment. The higher the marketization process, the more dispersed its equity, and the government subsidy promotes corporate technology innovation investment. The more significant it is; for industries with different product market competition, government subsidies have no significant impact on enterprises’ investment in technological innovation. Based on empirical research conclusions, this study puts forward policy recommendations to increase the intensity of government subsidies and optimize the structure of corporate equity to increase the leverage effect of government subsidies.
AB - Government subsidies are an important means to guide enterprises’ investment in technological innovation. While countries are increasing government subsidies to enterprises, how to effectively leverage government subsidies is a concern of the academic community. At present, scholars’ research conclusions on the impact of government subsidies on enterprise technological innovation include promotion effect, extrusion effect, and mixing effect. Relevant research is often conducted from a single perspective. This paper studies the relationship between government subsidies and enterprise technological innovation, and integrates the macro-institutional environment, meso-market structure, and micro-corporate governance into the same framework. Taking information transmission, software, and information technology service companies as samples, it analyzes the influencing factors of the Chinese government research and development (R&D) subsidies on enterprises’ innovation investment. This paper uses Stata16 software to perform the least square analysis. The research shows that the Chinese government R&D subsidies have a significant incentive effect on corporate technology innovation investment. The higher the marketization process, the more dispersed its equity, and the government subsidy promotes corporate technology innovation investment. The more significant it is; for industries with different product market competition, government subsidies have no significant impact on enterprises’ investment in technological innovation. Based on empirical research conclusions, this study puts forward policy recommendations to increase the intensity of government subsidies and optimize the structure of corporate equity to increase the leverage effect of government subsidies.
KW - Chinese government subsidies
KW - Corporate governance
KW - Institutional environment
KW - Market structure
KW - Technology innovation investment
UR - http://www.scopus.com/inward/record.url?scp=85100276991&partnerID=8YFLogxK
U2 - 10.3390/su13031288
DO - 10.3390/su13031288
M3 - Article
AN - SCOPUS:85100276991
SN - 2071-1050
VL - 13
SP - 1
EP - 23
JO - Sustainability (Switzerland)
JF - Sustainability (Switzerland)
IS - 3
M1 - 1288
ER -