Government Subsidies and Corporate Innovation
DOI:
https://doi.org/10.62051/p99has63Keywords:
Government subsidies; corporate innovation; R&D investment; mediating effect.Abstract
Government subsidies play a crucial role in addressing market failures in corporate innovation. Using 2007-2021 data of Chinese A-share listed companies, excluding non-innovation subsidies, this study applies a two-way fixed effects model to analyze government subsidies’ impact on enterprises, and uses R&D investment as a mediator to explore its role in the government subsidies-corporate innovation relationship. The research findings are as follows: First, government innovation subsidies can significantly increase enterprises’ innovation output. Second, government innovation subsidies have a significant incentive effect on the substantive innovation output of private enterprises and enterprises in the growth and maturity stages. Third, R&D investment exerts a partial mediating effect in the relationship between government subsidies and corporate innovation.
Downloads
References
[1] Drucker P F. The practice of management: A study of the most important function in America society[M]. Harper & Brothers, 1954.
[2] Hottenrott H, Peters B. Innovative capability and financing constraints for innovation: more money, more innovation? [J]. Review of Economics and Statistics, 2012,94(4):1126-1142. DOI: https://doi.org/10.1162/REST_a_00227
[3] Huang Q, Yuan T. Does Political Corruption Impede Firm Innovation? Evidence from the United States[J]. Journal of Financial and Quantitative Analysis, 2021,56(1):213-248. DOI: https://doi.org/10.1017/S0022109019000966
[4] Tian X, Wang T Y. Tolerance for Failure and Corporate Innovation[J]. The Review of Financial Studies, 2014,27(1):211–255. DOI: https://doi.org/10.1093/rfs/hhr130
[5] Angelmar R. Market structure and research intensity in high-technological-opportunity industries[J]. The Journal of Industrial Economics, 1985:69-79. DOI: https://doi.org/10.2307/2098482
[6] Koeller C T. Innovation, market structure and firm size: a simultaneous equations model[J]. Managerial and Decision Economics, 1995,16(3):259-269. DOI: https://doi.org/10.1002/mde.4090160308
[7] He J, Tian X. The dark side of analyst coverage: The case of innovation[J]. Journal of Financial Economics, 2013,109(3):856–878. DOI: https://doi.org/10.1016/j.jfineco.2013.04.001
[8] Fang V W, Tian X, Tice S. Does Stock Liquidity Enhance or Impede Firm Innovation?[J]. The Journal of Finance, 2014,69(5):2085–2125. DOI: https://doi.org/10.1111/jofi.12187
[9] Luong H, Moshirian F, Nguyen L, Tian X, Zhang B. How Do Foreign Institutional Investors Enhance Firm Innovation?[J]. Journal of Financial and Quantitative Analysis, 2017,52(4):1449-1490. DOI: https://doi.org/10.1017/S0022109017000497
[10] Mao C X, Zhang C. Managerial Risk-Taking Incentive and Firm Innovation: Evidence from FAS 123R[J]. Journal of Financial and Quantitative Analysis, 2018,53(2):867-898. DOI: https://doi.org/10.1017/S002210901700120X
[11] Bronzini R, Piselli P. The impact of R&D subsidies on firm innovation[J]. Research Policy, 2016,45(2):442-457. DOI: https://doi.org/10.1016/j.respol.2015.10.008
[12] Bérubé C, Mohnen P. Are firms that receive R&D subsidies more innovative? [J]. Canadian Journal of Economics/Revue canadienne d'économique, 2009,42(1):206-225. DOI: https://doi.org/10.1111/j.1540-5982.2008.01505.x
[13] Lin B, Luan R. Are government subsidies effective in improving innovation efficiency? Based on the research of China's wind power industry[J]. Science of the Total Environment, 2020,710:136339. DOI: https://doi.org/10.1016/j.scitotenv.2019.136339
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Transactions on Economics, Business and Management Research
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
