Government-subsidized R&D and firm innovation: evidence from China

This study investigates the effects of government R&D programs on firm innovation outputs, which are measured by the number of patents, sales from new products, and exports. Particularly, we examine the effects of Innovation Fund for Small and Medium Technology-based Firms (Innofund), which is o...

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Main Authors:	Guo, Di, Guo, Yan, Jiang, Kun
Format:	Article
Language:	English
Published:	Elsevier 2016
Online Access:	http://eprints.nottingham.ac.uk/50073/ http://eprints.nottingham.ac.uk/50073/ http://eprints.nottingham.ac.uk/50073/ http://eprints.nottingham.ac.uk/50073/1/Government-Subsidized%20RD%20and%20Firm%20Innovation_RP.pdf

id	nottingham-50073
recordtype	eprints
spelling	nottingham-500732018-02-28T12:09:57Z http://eprints.nottingham.ac.uk/50073/ Government-subsidized R&D and firm innovation: evidence from China Guo, Di Guo, Yan Jiang, Kun This study investigates the effects of government R&D programs on firm innovation outputs, which are measured by the number of patents, sales from new products, and exports. Particularly, we examine the effects of Innovation Fund for Small and Medium Technology-based Firms (Innofund), which is one of the largest government R&D programs that support R&D activities of small and medium-sized enterprises in China. Using a panel dataset on Chinese manufacturing firms from 1998 to 2007, we find that Innofund-backed firms generate significantly higher technological and commercialized innovation outputs compared with their non-Innofund-backed counterparts and the same firms before winning the grant. Moreover, the changes in the governance of Innofund in 2005 from a centralized to a decentralized one because of policy amendments have significant effects on the effectiveness of the program. Specifically, the magnified effects of Innofund on technological innovation outputs become significantly stronger after the governance of Innofund becomes more decentralized. Identification problems are addressed by utilizing both propensity score matching and two-stage estimation approaches. Elsevier 2016-03-19 Article PeerReviewed application/pdf en cc_by_nc_nd http://eprints.nottingham.ac.uk/50073/1/Government-Subsidized%20RD%20and%20Firm%20Innovation_RP.pdf Guo, Di and Guo, Yan and Jiang, Kun (2016) Government-subsidized R&D and firm innovation: evidence from China. Research Policy, 45 (6). pp. 1129-1144. ISSN 1873-7625 https://www.sciencedirect.com/science/article/pii/S0048733316300257?via%3Dihub doi:10.1016/j.respol.2016.03.002 doi:10.1016/j.respol.2016.03.002
repository_type	Digital Repository
institution_category	Local University
institution	University of Nottingham Malaysia Campus
building	Nottingham Research Data Repository
collection	Online Access
language	English
description	This study investigates the effects of government R&D programs on firm innovation outputs, which are measured by the number of patents, sales from new products, and exports. Particularly, we examine the effects of Innovation Fund for Small and Medium Technology-based Firms (Innofund), which is one of the largest government R&D programs that support R&D activities of small and medium-sized enterprises in China. Using a panel dataset on Chinese manufacturing firms from 1998 to 2007, we find that Innofund-backed firms generate significantly higher technological and commercialized innovation outputs compared with their non-Innofund-backed counterparts and the same firms before winning the grant. Moreover, the changes in the governance of Innofund in 2005 from a centralized to a decentralized one because of policy amendments have significant effects on the effectiveness of the program. Specifically, the magnified effects of Innofund on technological innovation outputs become significantly stronger after the governance of Innofund becomes more decentralized. Identification problems are addressed by utilizing both propensity score matching and two-stage estimation approaches.
format	Article
author	Guo, Di Guo, Yan Jiang, Kun
spellingShingle	Guo, Di Guo, Yan Jiang, Kun Government-subsidized R&D and firm innovation: evidence from China
author_facet	Guo, Di Guo, Yan Jiang, Kun
author_sort	Guo, Di
title	Government-subsidized R&D and firm innovation: evidence from China
title_short	Government-subsidized R&D and firm innovation: evidence from China
title_full	Government-subsidized R&D and firm innovation: evidence from China
title_fullStr	Government-subsidized R&D and firm innovation: evidence from China
title_full_unstemmed	Government-subsidized R&D and firm innovation: evidence from China
title_sort	government-subsidized r&d and firm innovation: evidence from china
publisher	Elsevier
publishDate	2016
url	http://eprints.nottingham.ac.uk/50073/ http://eprints.nottingham.ac.uk/50073/ http://eprints.nottingham.ac.uk/50073/ http://eprints.nottingham.ac.uk/50073/1/Government-Subsidized%20RD%20and%20Firm%20Innovation_RP.pdf
first_indexed	2018-09-06T14:10:58Z
last_indexed	2018-09-06T14:10:58Z
_version_	1610867601702912000

Government-subsidized R&D and firm innovation: evidence from China

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