Government Grants Research Articles

Improving the Laboratory Investigation Price Revising Process at Sri Jayawardhanapura General Hospital

Sri Jayawardhanapura General Hospital (SJGH) is a non-profit public enterprise that offers reasonable services. The hospital relies on government grants and revenue generated by patient care services for funding. One of its crucial departments is a laboratory, which serves as a vital support service and the main profit center. However, the frequent rise of consumable prices during economic crises significantly impacts the variable costs of laboratory tests, resulting in financial losses.Calculating the cost incurred by laboratory investigations is essential for implementing a price revision strategy to address this issue. Given the absence of a recognized method for calculating investigation costs, adopting the World Health Organization's Laboratory Test Costing Tool (LTCT), a user-friendly Microsoft Excel-based tool, is recommended. This tool is specifically designed to assist in calculating laboratory test costs, ensuring a more accurate understanding of expenses incurred.Additionally, establishing key indicators to signal the need for price revision and assigning responsibility to initiate the price revision process when these indicators are triggered will streamline the process and improve its responsiveness to financial challenges. By employing such a system, SJGJ can better manage its laboratory costs, maintain service quality, and ensure sustainable operations even during economic hardships.

Developing electric vehicles in China and the United States: Revisiting debates on industrial strategy

AbstractMotivationStrategies to develop manufacturing industry are the subject of lively debate over whether to follow or defy national comparative advantage. Electric vehicles (EVs), a major change for automobile manufacturers, are no exception.Despite the US government's promotion of global integration to activate the semi‐invisible hand of market forces, neither traditional Detroit automakers nor new firms, even with government grants or loans, were able to launch EVs on the world market promptly, with the notable exception of Tesla. In China, the government helped dozens of domestic electric vehicle manufacturers enter the market through formidable government subsidies. However, none of China's manufacturers, other than Wuling, were able to surpass Tesla in sales in China.The rapid growth of Tesla and Wuling without relying heavily on government protection and subsidies raises the question of whether their success can be attributed to other forms of state intervention.PurposeWhat policies and strategies enable manufacturers to develop and market a new technology, such as EVs? What can we learn by comparing the experiences of US and Chinese vehicle manufacturers?We consider these questions and what the implications are for debates about industrial development strategy.Methods and approachWe compare four carmaking firms—GM, Tesla, BYD, and Wuling—their business strategies and their interactions with the US and Chinese states. We draw on company reports, government documents, and press reports.FindingsBoth China and the US employed semi‐developmentalist, semi‐neoliberal policies to promote the manufacture of EVs. The US subsidized research and development in its automobile industry and provided incentives to consumers. It has subsequently moved to lending to the most promising firms for EV production. China, in contrast, has selectively subsidized EV firms all the way from development to marketing.Subsidies from the US government have been steady: they are expected to stay this way in the near term. However, the fastest‐growing carmakers have used outward foreign direct investment to gain competitive advantage. China's subsidies, on the other hand, have been unstable: linked to the performance of the target firms. The higher the firm's profit, the lower the subsidies and vice versa. China has been careful with subsidies to prevent rent seeking and moral hazard.Neither following nor defying comparative advantage explains the strategies followed by the four firms: comparative advantage considerations have been tempered by the possibilities of foreign investment.Policy implicationsThe results imply that traditional developmental strategies have resorted to inward foreign direct investment in high‐income countries as a means to learn technologies and outward foreign direct investment in low‐ and medium‐income countries as a way to reduce production costs, but have missed the comparative advantage of outward and inward foreign direct investment, and strategic mixes of these, when developing and diffusing radical innovation like EVs.

Politics of local fiscal discipline with vertical fiscal imbalance

AbstractWe examine the political conditions mediating the effect of vertical fiscal imbalance (VFI) on local government fiscal discipline in Ghana. Based on a panel dataset of 216 local governments in Ghana over the period 1994–2018, we adopt both a static and dynamic approach, in addition to a regression discontinuity design. From the results, while alignment may give “free pass,” local governments could leverage same for effective tax efforts. Further, the benefits of lower political competition may reduce where local governments place reliance on central government grants. There is consistent evidence of a negative effect of VFI on fiscal discipline.

Core Mechanisms in Mediating eHealth Implementation and Uptake: A Case Study of Eastern Uganda

Researchers agree that, globally, in both developing and developed countries, healthcare management is faced with acute challenges: expanding areas of health needs, operationalizing health management, constrained budget allocations, as well as resource limitations. Hence, there is an imminent drive to find solutions to stimulate health system transformation through health system innovation. Therefore, effective national operational strategies to minimize resource wastage and contain the costs of health service delivery are critical. The study adopted a methodology that incorporated different research approaches and strategies. Deductive and inductive approaches were used; the strategies were surveys and case studies. A sample of 178 health professionals and administrators in three Health care facilities in Eastern Uganda, were determined and surveyed. Eligible respondents were stratified and selected through simple random sampling. Self-administered questionnaires and interview guides were used to gather the data. The captured data was analysed using Stata version 17. Regression analysis was used to determine the impact of eHealth Implementation core mechanisms on Quality Health Service Delivery. From the results of regression analysis, the core mechanisms variable had a p-value of 0.049 which was significant. For eHealth Implementation Core Mechanisms, the respondents have less control over them since they are dependent on several environmental factors, such as government funding or grants, Government regulations, and policies among others.

Preventing Corruption in Bali’s Customary Villages: How Do Regional Institutions Play a Role?

Customary villages are traditional institutions in Bali that have existed for centuries. The village has autonomy when it comes to managing its customary arrangements based on local traditions and wisdom, meaning that it does not have a hierarchical relationship with the government based on the state structure of the Republic of Indonesia. The Bali Province Government, a second-layer hierarchical government structure in Indonesia, applies a unique approach to performing relationships with customary villages in Bali as it has regularly supported the existence and activities of customary villages, including providing funding assistance. Unfortunately, several cases have shown the misuse of government funds. This article, therefore, identifies the practice of fraud and corruption in customary villages in Bali. Second, it analyses the role of the Customary Community Development Agency (DPMA) of the Bali Province Government in supervising the financial management of Bali's customary villages. Lastly, it supports the synergy between DPMA and the Representative Office of the Financial and Development Supervisory Agency (BPKP) of Bali Province in preventing corruption cases in the customary villages. The article applies empirical legal research, which involves collecting primary and secondary data and analyzing them using statutory, factual, and legal concept analysis approaches. The research suggests that fraud and corruption cases in customary villages cause a loss of government funds, harming the financial management of Village Credit Institutions (LPD), and involving the misuse of power. The provincial regulation authorizes DPMA to address this issue by monitoring how customary villages use the Bali Province Government grants. This paper then argues that the DPMA’s role would be more effective if it adopted a more formal collaboration with the Representative BPKP in Bali Province through various joint programs that support the comprehensive efforts to prevent corruption in customary villages in Bali.

GENESIS OF THE CONCEPT OF «GOODWILL»

Goal. The problem of defining the essence of goodwill lies in its complex and multifaceted nature. Goodwill formation occurs constantly, but as a fully-fledged accounting object, disclosed in consolidated financial statements, it arises during business combinations. Various stakeholders have subjective perceptions of goodwill, complicating its definition, evaluation, and accounting. The relevance and purpose of the research lie in the necessity of formulating a comprehensive approach to understanding the essence of goodwill, considering its etymology, analysis of domestic and foreign contemporary and historical sources, existing approaches to interpretation, and highlighting key categories. Method. The research utilized methods of systemic analysis, synthesis, comparison, systematization, analogy, and generalization. Results. The global economy witnesses an increase in the value of intangible assets and goodwill. The change in the dominance of approaches to understanding the essence of goodwill, analysis, and systematization of existing sources allowed identifying that for the current stage of development of this concept, the recognition of its complexity and diversity is characteristic. This necessitates the identification of key components of goodwill, analyzing their role in business value management, brand value enhancement, and capital accumulation. The main focus is on using goodwill to measure consumer trust, shape the company's reputation, and assess its performance. The proposed comprehensive definition of goodwill as a special intangible asset that reflects the added value of the business, potential for future income generation, shaped by the interaction of components such as reputation, brand, recognition, image, corporate style, customer loyalty, corporate culture, technological advantages, customer base, trade secrets, know-how, research, development, innovation, patents, licenses, copyrights, government grants, partnerships, competencies, managerial qualities, social and environmental responsibility, collectively providing business with competitive advantages, investment attractiveness, and contributing to its successful operation. The proposed definition will most fully account for the key components of goodwill expression and generation, helping to comprehensively understand its essence and positively impact the market capitalization of the business. Practical significance. Correct understanding of goodwill is important for accurate assessment, completeness of disclosure in consolidated financial statements, and for effective management and justification of investor decisions.

A critical analysis of government grants accounting approaches. Part 1

Subject. This article discusses the theoretical, historical and methodological particularities of State assistance accounting, including the socio-economic relations that have developed between companies, developers of accounting standards and the academic community. Objectives. The article aims to critically characterize approaches to State assistance accounting, show the theoretical inconsistency of the International Financial Reporting Standard (IAS) 20 – Accounting for Government Grants and Disclosure of Government Assistance, and choose the most appropriate method that corresponds to the guideline scientific concepts. Methods. The research is speculative. For the study, I used the dialectical method of scientific knowledge, the method of collecting theoretical and regulatory information, the method of formalization, as well as analysis, synthesis, observation, and comparison. Results. The scientific novelty lies in the generalization and characterization of five approaches to the accounting for State assistance. The article substantiates that State assistance should be recognized as part of liabilities if and only if there are current and/or future conditions that impose obligations on the organization to receive State assistance, otherwise it should be recognized exclusively as part of equity. It is found that the background of these standards in the area of accounting for State assistance is the result of lobbying companies to increase net income. Conclusions and Relevance. The results of the study call into question the acceptability of the theoretical foundation of IAS 20. The results of the study are primarily intended for the accounting scientific community and developers of accounting standards.

The effect of impact investing on performance of private firms

This study empirically examines the effectiveness of impact investing of private firms in Slovenia. We use a sample of 7671 distinct private firms during the 2005–2020 period applying for and eventually receiving various government grants. This allows us to identify firms with the intent to impact-invest. We employ the staggered difference-in-difference (SDiD) approach recently proposed by Baker et al. (2022) and Athey and Imbens (2022) to assess the outcomes of these investments over time and across firms. SDiD allows for firms switching back and forth between receiving and not receiving grants and thus being a treated observation or a potential control observation respectively. Our results show that firms receiving an impact investing grant, on average, increase the number of employees in the subsequent period, generate higher cash flows from operations, increase value added per employee, make higher capital investments, have higher levels of exports, but grants hinder firm productivity in the short-run. PSM, the time-varying average treatment effects, and Heckman’s two-stage approach robustness analyses further support the conclusions that the impact investing grants successfully foster firm performance.

Exploring the Evolution of Research Connectivity and Funding in Global Neurosurgical Publications

There are critical disparities in the neurosurgical care provided around the globe due to challenges in resource allocation, training, and infrastructure. Global neurosurgical collaborations have replaced classical mission trips to address these disparities. However, the development of these collaborations and the impact of research funding on their growth has not yet been systematically studied. In this article, we use a graph theoretical approach to investigate trends in funding and co-authorship between and among authors from high-income countries (HICs) and authors from low- and middle-income countries (LMICs). A bibliometric search of the global neurosurgical literature returned 307 articles between 1985 and 2020. A connectivity analysis was conducted to compute the number of co-authorships between HIC-HIC, LMIC-HIC, and LMIC-LMIC authors. The number of connections, summarized as either a global sum of connections or an average number of connections per manuscript, were analyzed in the context of time and funding through parametric statistical tests. An exponential increase in co-authorship collaboration was observed over time, especially after 2015. Notably, LMIC-LMIC collaborations appear to be rising at over twice the rate of other collaboration types. The presence of funding, in general, was associated with increased co-authorship of manuscripts by LMIC and HIC authors together (p = 0.033). A significant majority of the funding associated with LMIC-HIC co-authorships was supplied through charitable organizations and government grants (p = 0.034, p = 0.009, respectively). Most LMIC-LMIC co-authorships had no funding. This work shows significant and rapid growth in international neurosurgical partnerships, especially in HIC-LMIC and LMIC-LMIC collaborations. Also, a significant positive relationship exists between research funding and LMIC-HIC co-authorship trends. This work encourages us as a community to continue to expand our translational collaborations with LMIC neurosurgeons and establish funding mechanisms independent of HIC authors.

Feasibility Study for a Commercial Space Station in Low Earth Orbit

Space exploration demands innovative solutions. Currently, this sector is financially driven by governmental agencies with the support of industry partners. However, a paradigm shift will be observed with the planned de-orbiting of the International Space Station (ISS). The National Aeronautics and Space Administration (NASA) spends $3.1 billion on ISS operations. Nevertheless, as per the ISS Transition Report 2022, switching to a self-sustaining Commercial Space Station (CSS) in Low Earth Orbit (LEO) could save the agency approximately $1.8 billion annually by 2033. This figure is derived from the difference between NASA's current ISS operational costs and the projected costs of utilizing a CSS. These savings could allow room for industry growth and create new global opportunities for human space exploration while enabling governmental agencies to refocus on upcoming lunar missions.NASA's expected contribution to CSS development costs is estimated to be a portion of the overall development costs, with the rest likely coming from private investments and other funding sources. NASA's investment in the CSS development can be considered a sunk cost, as it may not be repaid directly but is expected to generate returns on investment through savings on operational costs and by fostering growth in the space industry.Upcoming stations like Orbital Reef, Axiom Station, and Starlab cater to diverse customers and offer prospects for scientific research, in-space manufacturing, space tourism, creative industries and education. However, research is necessary to ensure their financial viability. This study aims to evaluate a CSS’s financial and economic feasibility, focusing on potential new businesses and how to achieve a self-sustaining business park in space. This assessment encompasses analyzing costs, funding sources, market and competitor trends, business models, and revenue streams while focusing on legal, political, and cultural factors.Our findings reveal that space-based research will likely be LEO’s most significant revenue generator within the decade, thanks to existing government grants and contracts. NASA's $1.8 billion annual expenditure on LEO activities could meet its requirements for research, technology development, and training. However, potential implications may arise if this expenditure proves insufficient. In such cases, NASA might need to reevaluate its budget allocation, seek additional funding, or collaborate more extensively with private entities to ensure its LEO requirements are met. A shortfall in expenditure could potentially impact the pace of technology development and affect NASA's ability to conduct research and maintain its presence in LEO.According to Deloitte, space tourism could become the most profitable revenue stream at the beginning of the next decade, with an estimated annual revenue of up to $3.3 billion. Furthermore, once the industry overcomes technical challenges and the demand for in-space manufacturing becomes sufficient, it will likely become the primary revenue stream. Finally, our analysis reveals that fine arts, live events, TV Film, and STEAM (Science, Technology, Engineering, Arts, and Mathematics) education have the potential to generate $242 million as additional revenue streams. In conclusion, this study offers a roadmap of future business prospects and actionable recommendations outlining various activities, demands, and possibilities that can be carried out in a CSS. The report can serve as a general guideline for commercial space entities to leverage emerging prospects in the space industry. Moreover, this study can be a source for space agencies seeking to expand their activities and optimize their resources.

Determinants of rural households’ food security status in South Africa: lessons from covid-19 social relief grant recipients in NIDS-CRAM wave 5

The world experienced an unprecedented health shock (COVID-19) which caught everyone by surprise, and destabilized many sectors, especially the agri-food sector. This unpleasant situation caused upset in the food production and distribution chain, and continues to threaten the attainment of Sustainable Development Goal 2 which underscores zero hunger in society. Many people in South Africa were disproportionately affected with severe consequences on their livelihood activities, food security status, health status, and general welfare conditions; and as a result, social relief intervention was put in place or expanded. This study examined the factors influencing rural households’ food security status among the recipients of social relief grants in rural areas of South Africa. The study used a secondary dataset from Wave 5 of National Income Dynamics Study - Coronavirus Rapid Mobile Survey (NIDS-CRAM). The research applied descriptive statistics to describe the respondents’ socio-economic characteristics, and pattern of income flow. Food Insecurity Access Scale was employed to investigate the respondents’ food security status, while multinomial logistic regression was used to explore the determinants of food security. The results showed that the majority of the respondents were black (99%), female-headed (54.15%), dwelling in flats (74.01%), with secondary education (88.6%), and heavily dependent on government grants (58.61%). Also, most households were food secure (71.69%) during the pandemic. Moreover, households headed by men were more food secure (62.84%) compared to the ones headed by the female counterparts (37.08). Multinomial regression estimates revealed that formal education (p<0.1), employment status (p<0.05), dwelling type (p<0.01), as well as household size (p<0.01) significantly determined rural households’ food security status. The study concluded that social relief grants significantly reduced the food insecurity situation among the rural households in South Africa, and recommended that the government should ensure the continuation of the social relief of distress grant to the vulnerable people who are mostly domiciled in the rural areas, especially women who are disproportionately affected by these health shocks. Key words: Covid-19, social grant, rural households, food security, South Africa

Does an expanded allied health student training programme in regional New South Wales (Australia) result in a positive social return on investment? A protocol for a single-university education-based economic evaluation

Introduction20 years ago, health professional student placements in rural areas of Australia were identified as an important rural recruitment strategy and funding priority. Since then, there has been a growing...

Consumer environmental awareness and green R&D subsidy policy under Cournot–Bertrand comparisons

ABSTRACT This study examines the impacts of consumer environmental awareness on green R&D subsidy policies under different market competition modes when firms adopt green strategies for emissions-reduction activities. We demonstrate that governments grant fewer subsidies to Cournot firms than Bertrand firms. Thus, Cournot firms produce lower outputs and invest less in green R&D. However, firms’ profits and social welfare are higher (lower) in Cournot than in Bertrand firms if the product substitutability is high (low). We also investigate an endogenous competition mode game and find that a Cournot (Bertrand) competition is a socially desirable equilibrium when products substitutability is relatively high (low) while consumer environmental awareness is not sufficiently high (low). These findings suggest that through appropriate green subsidies, antitrust authorities should monitor not only consumer environmental awareness but also firms’ competition mode coordination.

Veterinary Services'use of the Global Burden of Animal Diseases to prioritise interventions, monitor impact and develop critical competencies.

Attracting and sustaining investment in Veterinary Services and animal health programmes from national government budgets, development aid and grants, and philanthropic donors requires economic rationale using relevant, reliable and validated analytical approaches. The complex interwoven relationships between animal health, livestock husbandry systems, national food security, global health security and environmental sustainability emphasise the importance of improving data governance and stewardship and applying economic analysis to understand animal disease burdens. These efforts should enable prioritised investment of limited resources and effective monitoring of the impact of programmes over time. Data governance and stewardship capacities are fundamental to development, implementation and performance monitoring of evidence-based policies in animal health. There are challenges in data availability for national and subnational livestock populations in different sectors, for disease incidence and prevalence, and for animal health expenditure in support of optimised allocation of scarce resources, be they finance, land, labour, or management attention and policy focus. Animal health data systems governance and stewardship and economic analysis are core skills for Veterinary Services in developing and applying evidence-based policy, but capability probably varies among World Organisation for Animal Health (WOAH) Members. The WOAH Performance of Veterinary Services programme has several critical competencies that are relevant to economics of animal health and to data governance and stewardship, but these have not yet been targeted for coordinated capacity development. Implementation of publicâ€"private partnership approaches for animal health programmes creates increasing expectations of robust data and methods for prioritisation, options analysis, and assessing impacts and costs. Experience and examples from national systems in New Zealand, Australia, Ethiopia and Indonesia illustrate current challenges associated with prioritisation of animal health programmes using economic analysis. The Global Burden of Animal Diseases programme intends to support WOAH Members and partners to develop capacities for and standardise approaches to economic analysis and prioritisation in animal health programmes.

Analyzing Economy at Municipal level - A Case Study of Vaniyambadi Municipality

Abstract: The Vaniyambadi Municipality case study is highlighted in this paper's analysis of municipal economics. The economy has a big impact on urban planning and is essential to the development and well-being of cities. The paper highlights the value of effective revenue collection and management by looking at the Vaniyambadi Municipality's organizational structure and revenue administration. There is also discussion of the challenges the municipality faces, such as its reliance on government grants and subsidies, growing expenses, and declining investment income. The article provides ways to address these issues, including increasing income, decreasing reliance on handouts, and developing a long-term financial plan. Examining revenue and expense accounts reveals concerning trends that highlight the need for financial sustainability. The article explores the organizational structure, historical context and population statistics for the Vaniyambadi Municipality. It discusses the several economic sectors primary, secondary, and tertiary and how they impact the local economy. The document's conclusion lists challenges with expenditure and revenue generation and underlines how urgently these problems must be resolved if Vaniyambadi Municipality is to continue to be sustainable in the long run.

Bangers and cash: partisan bias in local government grant allocations across Great Britain

ABSTRACT This article examines partisan bias in local government grants across Great Britain, testing whether grant-awarding governments allocate more resources to local authorities controlled by their own party. The results suggest substantial pork-barrelling in grant allocations: the UK government allocates more in grant funding to English local authorities after they become politically aligned. A weaker partisan bias is also found in Wales. In Scotland, there is no evidence of such bias, a result which may be explained by a lesser reliance on more easily targetable specific grants, different electoral systems or the intergovernmental frameworks characterising local government grants in Scotland.

Revenue Diversification on Financial Sustainability of Public Universities in Kenya

Public universities play a critical role through academic empowerment of the citizens and actively participating in knowledge dissemination and research in society. However, despite being the centers of knowledge creation and development, one of the significant challenges facing public universities in Kenya is financial sustainability. This is evidenced by growing debt from financial institutions, unremitted statutory deductions, and shrinking government grants. Whereas proponents of sound financial management practices including revenue diversification hold the practices as possible solutions for financial sustainability of every organization, few studies have been done to ascertain this position in Kenyan public universities. Therefore, this paper sought to assess the effect of revenue diversification on financial sustainability of Kenyan public universities. The study used modern portfolio theory and financial sustainability model to discuss the variables. A descriptive research design was adopted while targeting 41 public universities for the study. Random sampling approach was applied to select 22 out of the 41 public universities. Using a secondary data collection template, secondary panel data was collected from the office of auditor general for the financial years 2018/2019 to 2022 / 2021.The study found revenue diversification had a negative significant impact on financial sustainability using gearing ratio and a positive significant effect on financial sustainability using sustainability ratio in Kenyan public universities. The study recommends that public universities should explore innovative alternative sources of revenue and close revenue-generating units whose marginal costs are higher than marginal revenues.

The Economics of Missionary Colonialism: Evaluating the Church Missionary Society's Complicity in Dispossessing the Tsimshian of Metlakatla, 1882–1887

The 1882 religious schism in the mission village of Metlakatla, British Columbia, and the subsequent battle over land rights between the Tsimshian First Nations and settler governments, are some of the most extensively analysed events in the history of missions in nineteenth‐century Canada. Yet historians have overlooked the role played by the Church Missionary Society in perpetuating these events. Most importantly, historians have failed to ask why a society that was in financial difficulties and that regularly abandoned mission stations all over the world was so determined to hold on to this one station. The Society's official story was that it needed to protect its converts from persecution, but this article argues that two economic factors also contributed to the value of Metlakatla for the Society. First, competition with Methodist missionaries in the region made Metlakatla a valuable asset for attracting government grants and private donations. Second, the religious schism in Metlakatla undermined the Society's branding as a bastion of doctrinal purity, rendering it necessary to protect the Society's marketing strategy. Attending to these economic factors complicates simplistic narratives of imperial missionary work as only about Christianisation and civilisation, and contributes to ongoing efforts to understand missionary societies as corporations.

The Impact of Small Business Financing on The Digital Palestinian Economy

This study investigates the influence of financing on the digital economy of small businesses in Palestine. Through a combination of surveys and interviews with 50 Palestinian small business owners, the research reveals a nuanced relationship between financial support and its economic effects. The findings indicate that while some respondents experienced benefits such as enhanced competitiveness and market expansion, others encountered difficulties, suggesting the need for customized financial solutions. The study identifies prevalent financing mechanisms, including bank loans and government grants, and emphasizes the importance of specialized support programs in fostering entrepreneurship and generating employment. Job creation is highlighted as a significant economic impact, corroborating existing research on the role of small businesses in reducing unemployment and promoting economic stability. The study also addresses challenges related to financing, such as regulatory hurdles and political issues with international stakeholders, as noted in the literature. Overcoming these challenges is essential for maximizing the potential of small businesses in Palestine. Recommendations from respondents include simplifying regulations and enhancing collaboration between government bodies and financial institutions, offering practical measures to improve financial accessibility for small enterprises. This research contributes to a deeper understanding of how financing mechanisms can stimulate economic growth within the unique context of Palestine.

How global and national institutions interactively shape firms’ commitment to innovation regimes in latecomer countries

We investigate how the duality of innovation regimes in latecomer countries is institutionally shaped. We first specify the firm-level mechanism of commitment to both knowledge use and knowledge generation regimes with reference to the allocation of government grants across investments in machinery and equipment, and in research and development. Then, we theorize the interactive effects of global and national institutional systems on firms’ commitment to these innovation regimes. Our analysis of firm-level data from 16 latecomer countries classified as either hierarchical or collaborative national institutional systems indicates that, although firms are committed to both innovation regimes, the effect of global cultural rationalization steers firms toward the knowledge generation regime and away from the knowledge use regime. However, this movement away from the knowledge use regime due to rationalization is weaker in hierarchical systems. We contribute to the innovation regime literature by elucidating the firm-level duality in innovation regimes subject to global and national institutional effects.