Abstract
It is well known that innovation-driven emerging industries have gradually become the main driving force of global economic recovery and growth. Technological innovation decision-making is a complex and dynamic system, which is affected by various factors inside and outside an enterprise. In this dynamic system, how to make the optimal technological innovation investment decisions is a key concern for enterprises and governments. As an investment activity, technological innovation largely depends on the amount of external financing obtained by enterprises. However, financial constraints have increasingly become an obstacle to enterprises’ technological innovation. At the same time, technological innovation is also affected by the external political and economic environment, such as changes in economic policy, government subsidy policies, and institutional environmental policies. Can these external environments reduce the negative impact of financing constraints on technological innovation? In this study, based on the data of listed companies in China’s strategic emerging industries, we adopt a panel negative binomial regression model to investigate the complexity of technological innovation decision-making from the perspective of financing constraints. Our main findings include the following. First, financing constraints significantly inhibit the input and output of technological innovation in emerging industries. Second, the inhibition effect on the output of substantive innovations is more pronounced than that on the output of strategic innovations. Third, based on the analysis of enterprise heterogeneity in different dimensions, we show that this inhibition has a selective effect among different industries. Finally, we show that economic policy and marketization can help alleviate the inhibition effect of financing constraints on technological innovation.
Highlights
Innovation is a key issue of economic development and has become a driving force for high-quality development [1]
It is found that the inhibitory effect of financing constraints on substantive innovation, such as invention patent, is more pronounced than that of strategic innovation. irdly, we reveal the roles of economic policy uncertainty and the marketization in regulating the negative correlation between financing constraints and technological innovations. is helps to realize the connection of the microbehaviour and macro policy and provide the microevidence at the enterprise level on how the macropolicy drives the investment
Columns 2 and 3 in Table 6 are the regression results after adding the cross terms of marketization and financing constraints to the regression model. It shows that the coefficient of financing constraints is significantly negative, the coefficient of marketization is significantly positive, and the coefficient of a cross term is significantly positive, indicating that the marketization can help to alleviate the inhibitory effect of financing constraints on technological innovation
Summary
Innovation is a key issue of economic development and has become a driving force for high-quality development [1]. Innovation can bring more efficient technologies and promote social development [2]. No high-quality development is possible without the important supporting role of technological innovation. Strategic emerging industries is the key forces of technological innovation. E cultivation and development of strategic emerging industries are of great practical significance for building a modern economic system and realizing high-quality economic development [3, 4]. As an important investment activity, technological innovation is inevitably affected by a variety of factors inside and outside an enterprise. One is from the internal perspective of the enterprise, such as its nature, property rights, governance structure, strategy, equity incentives, size, age, investment strategies, and financial constraints
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