Abstract
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.
Highlights
Modern economic growth theory shows that technological development and knowledge accumulation play a pivotal role in determining economic growth [1]
After reviewing the relevant literature, we find that scholars mainly study the impact of government subsidies on enterprise innovation from a single perspective, such as the size of the enterprise, the type of enterprise research and development (R&D) investment, industry characteristics, and the time lag of policy effects, but the theoretical framework of how government subsidies promote enterprise technological innovation has not yet been formed
R&D = β0 + β1 sub + β2 PFIVES + β3 sub×PFIVES + α1 size of the company (Size) + α2 Debt + α3 growth of the company (Growth) + α4 ROE + α5 SOE + ε where R&D is the explained variable, which indicates the company’s technological innovation; sub indicates the number of government subsidies received by the listed company in the current period; Market indicates the Marketization index of China’s provinces; Herfindahl-Hirschman Index(HHI) indicates the product market competition; Shareholding ratio of the top five shareholders(PFIVES) indicates the concentration of equity, and size, debt, growth, return on equity (ROE) and state-owned enterprise (SOE) indicate a series of control variables
Summary
Modern economic growth theory shows that technological development and knowledge accumulation play a pivotal role in determining economic growth [1]. In terms of analysis from the perspective of the nature of property rights, Li Ling and Tao Houyong analyzed the data of 974 listed companies and found that government subsidies significantly impact the research and development (R&D) investment of private enterprises, and they played the role of “guiding hand”. It has a positive effect, but it has no significant impact on the.
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