Abstract

The textile industry is a traditional pillar industry of the national economy in China. The strategic goal of Chinese innovation is to upgrade and transform traditional industries and make them develop in coordination with high-tech industries, so as to realize sustainable industrial development. At the core of industrial sustainable development, the innovation of the textile industry in China has become an important issue worthy of attention. Based on resource-based theory and signal transfer theory, the relationship between government funding, R&D models and the innovation performance of the Chinese textile industry is studied. The results show that government funding has a significant, direct promoting effect on the internal R&D and science-based cooperation of enterprises. Government funding indirectly promotes market-based cooperation through internal R&D. The promoting effect of internal R&D on innovation performance is greater than that of cooperative R&D. Internal R&D and cooperative R&D have more promoting effects on R&D reserve performance than those on market performance. Government funding indirectly promotes innovation performance through the mediation of internal R&D and science-based cooperation. The threshold effect of cooperative R&D indicates that only when the cooperative R&D intensity exceeds the threshold can government funding foster innovation performance more effectively. The conclusions can provide theoretical guidance for the formulation of innovation policy.

Highlights

  • As the strategic form of enterprise’s R&D activities, R&D models can be divided into internal R&D and cooperative R&D, based on organizational boundaries and knowledge sources [1]

  • Nowadays, the Chinese textile industry may face problems such as low initiative of independent innovation, lack of innovative resources and the inefficient allocation of resources which lead to lower innovation performance

  • We explored the complex relationship between government funding, R&D models and the innovation performance of the Chinese textile industry

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Summary

Introduction

As the strategic form of enterprise’s R&D activities, R&D models can be divided into internal R&D and cooperative R&D, based on organizational boundaries and knowledge sources [1]. We explored the complex relationship between government funding, R&D models and the innovation performance of the Chinese textile industry. The contribution of this study lies in that firstly, the innovation behavior of enterprise is introduced into the existing research framework of the relationship between input and output which is composed of government funding and innovation performance. Based on the expanded research framework, the mechanism of government funding affecting enterprise innovation behavior and performance has been revealed. Further development of the innovative theory of the textile industry suitable for China’s national conditions may be able to provide useful reference for the formulation and implementation of China’s science and technology policy—especially the policy of promoting Chinese traditional industries innovation.

Literature and Hypotheses
Government Funding and Innovation Performance
Variables and Models
Data and Variables
Models
Conclusions and Discussion
Findings
Limitations and Future Research
Full Text
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