The Impact of Government R&D Subsidies on Enterprise Technology Innovation <br/>—Based on Evidence from Chinese Listed Companies — Oak Academic Publishing
Research ArticleOpen AccessGoogle Scholar indexed
The Impact of Government R&D Subsidies on Enterprise Technology Innovation <br/>—Based on Evidence from Chinese Listed Companies
School of Economics, Jinan University, Guangzhou, China
1 School of Economics, Jinan University, Guangzhou, China
This paper selects the data of non-financial listed companies in Shanghai Stock Exchange and Shenzhen Stock Exchange from 2007 to 2015, and studies the impact of government R&D subsidies on technological innovation of enterprises, then draws the following main conclusions: First, appropriate government subsidies can indeed promote enterprises’ technological innovation investment and output, but excessive government subsidies may have the opposite effect; second, there is a considerable amount of waste of resources in state-owned enterprises, and the problems of local state-owned enterprises are more complicated; the information asymmetry between the government and private enterprises may lead to serious “seeking support” behaviors in the process of applying for government subsidies. Based on this, this paper gives the following two policy recommendations: First, accelerate the governance reform of state-owned enterprises, especially for local state-owned enterprises, it is necessary to strictly control the process, to achieve the refinement of indicators, not only to see the results without looking at efficiency; second, efforts should be made to improve the relationship between private enterprises and the government, weaken the information asymmetry between each other, and ensure the effective allocation of resources.
Solow, R.M. (1957) Technical Change and the Aggregate Production Function. Review of Economics and Statistics, 39, 312-320. https://doi.org/10.2307/1926047
Romer, M. and Romer, P.M. (1989) Endogenous Technological Change. NBER Working Papers, 98, 71-102. https://doi.org/10.3386/w3210
Arrow, K. (1962) Economic Welfare and the Allocation of Resources for Invention. NBER Chapters, 12, 609-626. https://doi.org/10.1515/9781400879762-024
Nelson, R.R. (1959) The Simple Economics of Basic Scientific Research. Journal of Political Economy, 67, 297-306. https://doi.org/10.1086/258177
David, P.A. and Hall, B.H. (2000) Heart of Darkness: Modeling Public-Private Funding Interactions inside the R&D Black Box. Research Policy, 29, 1165-1183. https://doi.org/10.1016/S0048-7333(00)00085-8
Czarnitzki, D. and Fier, A. (2003) Publicly Funded R&D Collaborations and Patent Outcome in Germany. ZEW Discussion Papers. Centre for European Economic Research (ZEW), Mannheim.
Zhu, P.F. and Xu, W.M. (2003) The Impact of Government’s Science and Technology Incentives on R&D Investment and Patent Output of Large and Medium-Sized Industrial Enterprises—An Empirical Study in Shanghai. Economic Research, No. 6, 45-53 + 94.
Yang, Y., Wei, J. and Luo, L.J. (2015) Who Is Using Government Subsidies for Innovation?—The Joint Adjustment Effect of Ownership and Factor Market Distortion. Management World, No. 1, 75-86.
González, X. and Pazó, C. (2008) Do Public Subsidies Stimulate Private R&D Spending? Research Policy, 37, 371-389. https://doi.org/10.1016/j.respol.2007.10.009
Guellec, D. and Bruno, V.P.D.L.P. (2003) The Impact of Public R&D Expenditure on Business R&D. Economics of Innovation and New Technology, 12, 225-243. https://doi.org/10.1080/10438590290004555
Mao, Q.L. and Xu, J.Y. (2015) The Impact of Government Subsidies on New Product Innovation of Enterprises—Based on the Perspective of “Moderate Interval” of Subsidy Intensity. China Industrial Economy, No. 6, 94-107.
Lin, Z.Y., Lin, H.C. and Deng, X.H. (2015) Research on the Impact of Government Subsidy on Enterprise Patent Output. Science Research, 33, 842-849.
Wang, J. (2010) Empirical Study on the Impact of R&D Subsidy on Enterprise R&D Input and Innovation Output. Science Research, 28, 1368-1374.
Guo, B. and Luo, S.G. (2015) Does Local Government Financial Technology Funding Encourage the Technological Innovation of Enterprises?—Experience Research from Shanghai Enterprise Data. Shanghai Economic Research, No. 4, 70-78.
Guo, X.D., He, W.Z. and Xiao, X.Z. (2011) Government Subsidies, Additional Behaviors and Changes in R&D Activities in Strategic Emerging Industries. Macroeconomic Research, No. 11, 63-69.
Wu, Y. (2014) Investigation on the Technological Innovation Ability of Different Ownership Enterprises. Industrial Economics Research, No. 2, 53-64.
Vishny, S.R.W. (1994) Politicians and Firms. The Quarterly Journal of Economics, 109, 995-1025. https://doi.org/10.2307/2118354
Zhou, M.S. and Zhang, Q.Q. (2016) “Face Project” or “Realism”?—Research on State-Owned Enterprise Innovation Based on Political Promotion. Management World, No. 12, 116-132.
Luo, D. and Tang, Q. (2009) Political Relations, Social Capital and Policy Resources: Empirical Evidence from Chinese Private Listed Companies. World Economy, No. 7, 84-96.
Jie, W., Tang, Q. and Lu, S. (2009) Government R&D Funding, Corporate R&D Expenditure and Independent Innovation—Evidence from Chinese Listed Companies. Financial Research, No. 6, 86-99.
Zhou, L.A. (2007) Research on the Promotional Championship Model of Chinese Local Officials. Economic Research, No. 7, 36-50.
Zhou, L.A. (2004) Incentives and Cooperation of Government Officials in the Promotion Game—Also on the Long-Term Reasons of Local Protectionism and Repetitive Construction in China. Economic Research, No. 6, 33-40.
Fu, Y. (2010) Fiscal Decentralization, Government Governance and Supply of Non-Economic Public Goods. Economic Research, No. 8, 4-15.
Cao, C.F., Ma, L.F. and Shen, X.X. (2014) Financial Pressure, Promotion Pressure, Official Tenure and Excessive Investment by Local State-Owned Enterprises. Economics, 13, 1415-1436.
Chen, Z.M., Xia, X.P. and Yu, M.G. (2008) Government Intervention, Pyramid Structure and Investment of Local State-Owned Listed Companies. Management World, No. 9, 37-47.
Tang, X.S., Zhou, X.S. and Ma, R.J. (2010) Government Intervention, GDP Growth and Over-Investment of Local State-Owned Enterprises. Financial Research, No. 8, 99-112.
Li, M. (2015) Clarifying the Ten Relationships of Local Debt. Financial Review, No. 2, 57-73.
Gu, Y.Y. and Shen, K.R. (2012) Innovative Spirit of Local Officials and Regional Innovation—Based on Empirical Evidence from Prefectural Cities in the Pearl River Delta Region of the Yangtze River Delta. Financial Research, No. 11, 89-102.
Chen, M.M., Zhang, G.S. and Sun, X. (2016) State-Owned Enterprises, Government Subsidies and Enterprise Innovation Supply—An Empirical Study Based on Listed Industrial Enterprises. Contemporary Finance and Economics, No. 10, 34-44.
Kong, D.M., Liu, S.S. and Wang, Y. (2013) Market Competition, Property Rights and Government Subsidies. Economic Research, No. 2, 55-67.
Yu, M.G., Hui, Y.Z. and Pan, H.B. (2010) Political Connection, Rent-Seeking and the Effectiveness of Local Government Financial Subsidies. Economic Research, No. 3, 65-77.
Li, W.J. and Zhang, M. (2016) Substantial Innovation or Strategic Innovation?—The Impact of Macro Industry Policy on Microenterprise Innovation. Economic Research, No. 4, 60-73.
An, T.L., Zhou, S.D. and Pe, J.C. (2009) Incentive Effect of R&D Subsidy on Independent Innovation of Chinese Enterprises. Economic Research, No. 10, 87-98.
Chen, D., Jin, Y.L. and Dong, Z.Y. (2016) Policy Uncertainty, Political Connection and Enterprise Innovation Efficiency. Nankai Management Review, 19, 27-35.
Jie, W.M. and Fang, H.X. (2011) Financial Development, Financing Constraints and Enterprise R&D Investment. Financial Research, No. 5, 171-183.
Lu, T. and Dang, Y. (2014) Corporate Governance and Technological Innovation: Comparison by Industry. Economic Research, 49, 115-128.
Bi, X.F., Yan, S.P. and Jiang, B.Q. (2017) The Impact of Government Subsidy and Financial Redundancy on Dual Innovation in High-Tech Enterprises. Accounting Research, No. 1, 46-52.
Zhang, J., Lu, Z., Zheng, W., et al. (2012) Financing Constraints, Financing Channels and Enterprise R&D Investment. World Economy, No. 10, 66-90.
Yu, M.G., Zhong, H.J. and Fan, R. (2016) Can the Performance Appraisal System Promote the Innovation of Central Enterprises? Economic Research, No. 12, 106-119.
Xie, J.Z., Wang, W.T. and Jiang, Y. (2014) Manufacturing Finance, Government Control and Technology Innovation. Economic News, No. 11, 78-88.
Liu, H., Xiao, M.F. and Tang, Q.Q. (2012) Incentive and Extrusion Effect of R&D Subsidy on Enterprise R&D Expenditure—An Empirical Analysis Based on Data of Chinese Listed Companies. Economic Management, No. 4, 19-27.