Does public subsidy promote sustainable innovation? The case of Chinese high-tech SMEs

Xiang, Dong; Zhao, Tianzhen; Zhang, Ning

doi:10.1007/s11356-021-14555-5

Cited by 22 publications

(10 citation statements)

References 32 publications

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“…We measure innovation using patents emphasizing the output of corporate innovation, while Acebo and Miguel-Dávila (2020) measure innovation using R&D investment considering the input [ 14 ]. Thus, these contrasting conclusions indicate that subsidies might promote corporate innovation output by lifting innovative efficiency instead of innovative input [ 69 , 70 ], which deserves further research.…”

Section: Discussionmentioning

confidence: 99%

Financial constraints, government subsidies, and corporate innovation

Wang

Cao

et al. 2021

PLoS ONE

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To investigate the relationships between financial constraints, government subsidies, and corporate innovation, a semi-logarithmic fixed-effect panel model and mediation effect test were applied, based on the data of Chinese listed companies from 2007 to 2017. We find that (1) financial constraints suppress corporate innovation. (2) Government subsidies are targeted at bailing out firms facing financial constraints. (3) Government subsidies promote corporate innovation (4) Government subsidies partially offset the suppression of financial constraints on innovation. We contribute to the fields of public finance, corporate finance, and corporate innovation by: (1) justifying the government subsidies target strategy as a bailout of corporate financial constraints, (2) verifying the corporate-innovation promotion of government subsidies, thus justifying the efficiency of government subsidies, and (3) showing that different types of innovation benefit differently from subsidies, thus justifying subsidies as a structural innovation engine.

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Section: Discussionmentioning

confidence: 99%

Financial constraints, government subsidies, and corporate innovation

Wang

Cao

et al. 2021

PLoS ONE

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“…In government supervision and enterprise R&D investment, the Chinese government R&D subsidies significantly incentivize enterprise technology innovation investment (Jia et al, 2021). And government public support is an important policy tool to support enterprises in carrying out innovation and R&D in China (Xiang et al, 2021). But there are different conclusions.…”

Section: Figurementioning

confidence: 99%

Assessing the impact path of air quality on enterprise R&D investment: Empirical evidence from dual perspectives of investor sentiment and government concern

Yang

He²,

Qureshi³

2022

Front. Environ. Sci.

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Based on the data of Shanghai and Shenzhen A-share listed companies from 2015 to 2019, this paper studies the influence of air quality on the R&D investment of listed companies from the perspectives of investor sentiment and government concern. It is found that, on the whole, air quality has a significant inhibitory effect on R&D investment. Air quality significantly promotes investor sentiment, which serves as a path to further restrain the R&D investment of listed companies. Air pollution is an effective concern for the government and serves as a veil between air quality and R&D investment. Furthermore, this paper analyzes the heterogeneity of enterprises from the aspects of regional technology complexity, property right nature, whether it is a polluting enterprise or not, and whether it is a key regulated enterprise or not, and comes to relevant conclusions. This paper expands the research on air quality and enterprise R&D investment decision-making, which helps to clarify and improve the transmission mechanism and implementation effect of environmental protection policies.

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“…Countries have therefore made great efforts to provide support for SMEs and have shown their own policy measures. After years of practice, financial policies of SMEs [ 1 – 3 ]), tax incentives [ 4 , 5 ] and subsidies [ 6 , 7 ] and other fiscal policies have been proven to impact to different extents in various countries.…”

Section: Introductionmentioning

confidence: 99%

Can SMEs benefit equally from supportive policies in China?

Zhang

Wang

2023

PLoS ONE

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This paper applies quantitative and narrative approaches to fiscal and financial policies of Chinese small and medium enterprises (SMEs) in order to study the support effect of macro policies on micro enterprises. As the first researchers to focus on the firm heterogeneity of SMEs’ policy effects, we show that the “flood irrigation” supportive policies for SMEs have not achieved the expected “help the weaker” effect. Non-state-owned SMEs and small(micro) enterprises have a low sense of policy gain, which is contrary to some “positive” research conclusions from China. The mechanism study found that “ownership” and “scale” discrimination suffered by non-state-owned and small(micro) enterprises in the financing process are key. We suggest the supportive policies for SMEs should shift from “flood” to “precise drip” irrigation. The policy benefits of non-state-owned, small and micro enterprises need to be emphasized. More targeted policies need to be studied and provided. Our findings shed new light on the formulation of supportive policies for SMEs.

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Does public subsidy promote sustainable innovation? The case of Chinese high-tech SMEs

Cited by 22 publications

References 32 publications

Financial constraints, government subsidies, and corporate innovation

Financial constraints, government subsidies, and corporate innovation

Assessing the impact path of air quality on enterprise R&D investment: Empirical evidence from dual perspectives of investor sentiment and government concern

Can SMEs benefit equally from supportive policies in China?

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