Government Subsidy, External Financing, and Capacity for Scientific and Technological Innovation of Culture Industry from the Life Cycle Perspective

Abstract

The surging development of modern information technologies such as cloud computing and blockchain has stirred up a revolution in the culture industry. In order to further integrate culture with technology, local governments continuously inject subsidies into the culture industry. With listed companies in the Chinese culture industry as the samples, we innovatively combine the life cycle, with technological innovation input and output. This study indicates that government subsidy can remarkably boost the input and output of technological innovation in the culture industry, which delivers a signaling effect to enhance the external financing of listed companies in the culture industry; during the process when government subsidy affects technological innovation activities in the culture industry, equity financing performs better in intermediate effect than bank loans; in the culture industry, government subsidy has a stronger impact on the technological innovation input of growing listed companies and the technological innovation output of advanced listed companies; for growing enterprises in the culture industry, equity financing delivers a strong mediating effect between government subsidy and scientific and technological innovation capacity.