Can public R&amp;D subsidy facilitate firms’ exploratory innovation? The heterogeneous effects between central and local subsidy programs

Gao, Yuchen; Hu, Yimei; Liu, Xielin; Zhang, Huanren

doi:10.1016/j.respol.2021.104221

Cited by 125 publications

(50 citation statements)

References 81 publications

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“…Lucy and David [33] also find that R&D subsidies can spur innovation in the UK. With a panel data of manufacturing enterprises in China, Gao et al [34] find that both central and local R&D subsidies policies are successful in promoting enterprises' exploratory innovation. With a panel data of renewable energy enterprises in China, Wu et al [35] find that government R&D subsidies can significantly increase renewable energy investment, and Li et al [36] find that it can also stimulate renewable energy innovation at certain intervals.…”

Section: Literature Review and Researchmentioning

confidence: 99%

Government Subsidies and Enterprise Innovation: Evidence from China's Photovoltaic Industry

Jiang

Liu

Zhu

et al. 2021

Discrete Dynamics in Nature and Society

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Government subsidies (GSs) have triggered a remarkable increase in the production capacity of photovoltaic (PV) electricity in China. However, the lack of core technologies has limited PV enterprises’ competitiveness in the global market. This research investigates the impacts of R&D subsidies and non-R&D subsidies on the innovation in PV enterprises. With samples of Chinese listed PV enterprises from 2010 to 2019, this study finds R&D subsidies exert a notable positive impact on the innovation in PV enterprises. In small and medium enterprises (SMEs) and enterprises without state-owned shares, both R&D subsidies and non-R&D subsidies have positive impacts on the innovation. Considering the policy orientation, R&D subsidies granted under demand-orientation policies promote the innovation in PV enterprises. The government should increase the amount of R&D subsidies, optimize the R&D subsidies’ evaluation mechanism, and reasonably grant R&D subsidies from the demand side.

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Section: Literature Review and Researchmentioning

confidence: 99%

Government Subsidies and Enterprise Innovation: Evidence from China's Photovoltaic Industry

Jiang

Liu

Zhu

et al. 2021

Discrete Dynamics in Nature and Society

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“…This is confirmed by data and observations of the best developing cities in the world, often referred to as Smart Cities, which are characterized by above-average well-being of the urban community associated with access to state-of-the-art IT and ICT technologies and high levels of residents' income, health care, and education [82,83]. These cities attract new investments and create conditions conducive to the use of creativity and innovation [84,85]. In this way, they become incubators for new business ventures, including those emerging as start-ups.…”

Section: The Role Of City Authorities In the Development Of Local Entrepreneurshipmentioning

confidence: 68%

The Influence of Local Economic Conditions on Start-Ups and Local Open Innovation System

Jonek-Kowalska

Wolniak

2021

Journal of Open Innovation: Technology, Market, and Complexity

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The development of start-ups is a driving force of the local and regional economy. Therefore, it should be in the interest of municipal authorities to take actions for their organizational and resource support. In the conditions of limited public resources, however, it is a difficult and multifaceted task. Therefore, in this article, the authors attempt to determine the influence of local conditions on the establishment of start-ups. As a natural environment for the development of this type of entrepreneurship, cities were considered in which accessibility to infrastructure and human resources is high, and thus, by definition, conducive to creativity and innovation. Such a formulations of the objective and scope of the research allowed the existing theoretical and research gaps to be filled, relating to the identification and establishment of a hierarchy of local determinants of creating start-ups in the urban environment. The research in question was carried out on a representative sample of 287 Polish cities using questionnaire techniques and structural modelling. The results confirm the dominant influence of human and financial capital on the establishment of start-ups. The research also shows a slightly less significant influence of business incubators and technology parks on the creation of start-ups, which implies the need to improve the performance of these entities. The results also point to the positive role of direct city involvement in the development of this form of entrepreneurship.

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“…As such, we would expect that transgenerational succession results in a decrease in exploratory innovation. Following prior studies, we measured exploratory innovation as the number of novel patent applications generated by a focal firm in a given year (Gao et al, 2021; Gilsing et al, 2008; Phelps, 2010). A patent application was classified as novel if a focal firm had not patented in that class in the past 4 years.…”

Section: Resultsmentioning

confidence: 99%

Transgenerational Succession and R&D Investment: A Myopic Loss Aversion Perspective

Bruton

et al. 2021

Entrepreneurship Theory and Practice

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A transgenerational leadership transition is one of the most critical events in the life cycle of family firms. Drawing upon the myopic loss aversion (MLA) perspective, we argue that outgoing leaders and other company stakeholders tend to closely watch the later-generation successors immediately after a transgenerational succession, and thus the successors will focus on short-term developments and invest less in R&D activities. Employing the difference-in-differences approach, we find empirical support for our argument that transgenerational succession decreases R&D intensity. The negative effect of transgenerational succession is more pronounced when the later-generation successors suffer from a higher level of MLA.

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Can public R&D subsidy facilitate firms’ exploratory innovation? The heterogeneous effects between central and local subsidy programs

Cited by 125 publications

References 81 publications

Government Subsidies and Enterprise Innovation: Evidence from China's Photovoltaic Industry

Government Subsidies and Enterprise Innovation: Evidence from China's Photovoltaic Industry

The Influence of Local Economic Conditions on Start-Ups and Local Open Innovation System

Transgenerational Succession and R&D Investment: A Myopic Loss Aversion Perspective

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