China's R&amp;D Subsidies Allocation and Effectiveness

Boeing, Philipp

doi:10.2139/ssrn.2548368

Cited by 4 publications

(3 citation statements)

References 34 publications

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“…tax credits, special loans, and R&D grants, have a neutral or negative effect on patents. Boeing (2014) finds that R&D subsidies, on average, cause a crowding-out of firms' own R&D investments throughout the time period 2001 to 2006. However, for the time period after the enforcement of the MLP, 2007 to 2011, Deng & Hu (2014) investigate R&D activities of occasional R&D performers and find an increase in the amount and the continuity of R&D investments as well as in the number of patent applications -indicating an improving effectiveness of policy measures after 2006.…”

Section: Randd Activities In the Economymentioning

confidence: 99%

China's R&D Explosion Analyzing Productivity Effects Across Ownership Types and Over Time

2015

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. JEL Classification: O32, O33

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Section: Randd Activities In the Economymentioning

confidence: 99%

China's R&D Explosion Analyzing Productivity Effects Across Ownership Types and Over Time

2015

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“…In an independent study that is closely related to ours, but appeared later than ours, Boeing () applied a methodology similar to ours to a sample of firms listed on Chinese stock exchanges from 2001 to 2006. He found a significant crowding out effect of government R&D subsidies on private R&D spending, 1 yuan of government R&D leading to a 0.5 yuan reduction in private R&D spending.…”

Section: The Literaturementioning

confidence: 99%

Does government R&D stimulate or crowd out firm R&D spending? Evidence from Chinese manufacturing industries

Yongxu

2018

Econ of Transit and Inst Chang

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We examine whether receiving a government R&D grant stimulates or crowds out a firm’s own R&D spending in Chinese manufacturing industries. Using a database that spans the population of large and medium size privately owned Chinese manufacturing firms for the period from 2007 to 2011, a matching estimator and a matching and difference in‐differences estimator, we find a large firm R&D promoting effect of government R&D: receiving a government R&D grant led to a 4 to 9‐million‐yuan increase in a firm’s own R&D expenditures. This is a significant effect since the average R&D expenditures ranged from 5 to 9 million yuan in the year before receiving the grant. To understand the mechanisms behind this effect, we compare the before‐ and after‐treatment performance and behaviour of the treated and the control firms. We find that the government R&D receiving firms became more profitable following their receipt of the grant. We also find that receiving a government R&D grant increases the likelihood of a firm continuing its R&D performance after receiving the initial grant.

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“…There is not much debate about input and output additionality, but behavioral additionality concept has been broadly debated by scholars. R&D capabilities (Boeing, 2014;Bronzini and Piselli, 2016;Clarysse et al, 2009;Guan and Yam, 2015;Hsu et al, 2009;Radas et al, 2015), project size (Falk, 2007), productivity (Duguet, 2003) Collaboration (Clarysse et al, 2009;Falk, 2007;González and Paz o, 2008;Hsu et al, 2009;Hyvärinen and Rautiainen, 2007;Kang and Park, 2012;Radas et al, 2015) risk (Blind, 2012;Czarnitzki et al, 2007;Falk, 2007;Hsu et al, 2009;Radas et al, 2015) have been defined as behavioral additionalities. A set of indices are commonly introduced to explain behavioral additionality based on empirical observations; however, few attempts have been carried out to recognize such indices in the behavioral theories of the firm.…”

Section: Introductionmentioning

confidence: 99%

Evaluation of the effect of R&D subsidies on Iranian firms’ innovative behavior

Soltanzadeh

Elyasi

Ghaderifar

et al. 2019

JSTPM

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Purpose The purpose of this paper is to evaluate the effect of government intervention on a firm's innovation activities. Design/methodology/approach On the basis of previous literature, this paper proposes a framework to explain behavioral changes in the firm resulting from government interventions. Using propensity score matching technique, this research tries to estimate the effect of R&D subsidies on Iranian firms (small and medium-sized enterprises and large-sized firms). Findings This paper identified that R&D subsidies have a significant effect on the innovation process. Furthermore, investigations indicate that behavioral variables (innovation capabilities, collaboration agreements and risk-taking) have been partly changed in both SMEs and large firms after subsidizing. The analysis of innovation outputs showed that although R&D subsidies significantly increase the number of new products/services or patents (especially for SMEs), it could not increase the total sale of the firms. These results show that the effect of R&D subsidies has not interestingly covered all variables influencing innovation activities. Research limitations/implications The work used dynamic capability theory, transaction cost theory and behavioral theory of the firm to explain behavioral changes in the firm resulting from government interventions. Practical implications This paper proposes several policy concerns which can help the policymakers to stimulate the innovation support procedures in Iran. Social implications This paper provides insights for improved policymaking which in turn can aid boosting social welfare. Originality/value This paper re-conceptualized behavioral additionality based on firms’ behavioral theories and evaluated the effects of Iranian R&D subsidies on their measures.

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China's R&D Subsidies Allocation and Effectiveness

Cited by 4 publications

References 34 publications

China's R&D Explosion Analyzing Productivity Effects Across Ownership Types and Over Time

China's R&D Explosion Analyzing Productivity Effects Across Ownership Types and Over Time

Does government R&D stimulate or crowd out firm R&D spending? Evidence from Chinese manufacturing industries

Evaluation of the effect of R&D subsidies on Iranian firms’ innovative behavior

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