Making Waves: To Innovate or Be a Fast Second?

Yung, Chris

doi:10.1017/s0022109016000247

Cited by 9 publications

(3 citation statements)

References 37 publications

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“…4 For example, see Hall (1992), Himmelberg and Petersen (1994), Bond, Harhoff, and Van Reenen (2005), Hyytinen and Toivanen (2005), Brown, Fazzari, and Petersen (2009), Czarnitzki and Hottenrott (2011), Brown, Martinsson, and Petersen (2012& 2013), and Aghion et al (2012. In addition to relaxing financing constraints, better access to arm's length financing can facilitate innovation by both encouraging firms to pursue more novel innovations (Atanassov, Nanda, and Seru, 2007;Atanassov, 2015), and by reducing the incentives for firms to free-ride on the innovative efforts of competing firms (Yung, 2015). institutions, finance, and aggregate economic performance explored in numerous studies (e.g., King and Levine, 1993;Aghion and Howitt, 2005;Levine, 2005;Brown, Martinsson, and Petersen, 2016).…”

Section: Introductionmentioning

confidence: 99%

What promotes R&D? Comparative evidence from around the world

2017

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R&D drives innovation and productivity growth, but appropriability problems and financing difficulties likely keep R&D investment well below the socially optimal level, particularly in high-technology industries. Though countries around the world are increasingly interested in using tax incentives and other policy initiatives to address this underinvestment problem, there is little empirical evidence comparing the effectiveness of alternative domestic policies and institutions at spurring R&D. Using data from a broad sample of OECD economies, we find that financial market rules that improve accounting standards and strengthen contract enforcement share a significant positive relation with R&D in more innovative industries, as do stronger legal protections for intellectual property. In contrast, stronger creditor rights and more generous R&D tax credits have a negative differential relation with R&D in more innovative industries. These results suggest that domestic policies directly dealing with appropriability and financing problems may be more effective than traditional tax subsides at promoting the innovative investments that drive economic growth.

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Section: Introductionmentioning

confidence: 99%

What promotes R&D? Comparative evidence from around the world

2017

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“…The sport industry in China has more young and small firms with fewer intangible assets and also faces tremendous challenges in market development and severe financing constraints, which limit firms' R&D investments. Because these issues are especially pronounced for smaller, younger and technology-intensive firms (Yung, 2016), Chinese sport firms are especially vulnerable to these concerns. As a result, the impact of firm characteristics on R&D investment should be examined in the context of the Chinese sport industry and the reasons why an innovation-driven policy was put in place in China should be reflected in the since-increased R&D of these firms.…”

Section: Theoretical Framework and Hypothesis Developmentmentioning

confidence: 99%

Innovation-driven development strategy and research development investment: a case study of Chinese sport firms

Chen

Mao

Pifer

et al. 2020

APJML

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PurposeThis study investigated the effectiveness and applicability of China’s innovation-driven policies on encouraging sports firms to invest in research and development (R&D) activities.Design/methodology/approachThrough a series of multiple linear regression models, this study examined the direct and interaction effects of innovation-driven polices and firm characteristics on R&D investment for sport firms listed on the New Third Board in China.FindingsResults showed that financing constraints and certification as a high-tech enterprise were not themselves significant predictors of R&D investment; instead, the number of R&D staff and a firm's total assets were identified as key internal factors predicting the level of a firm's R&D investment. Other effective policy tools for stimulating Chinese sport firms' R&D investments included pre-tax deductions of R&D expenses, government R&D subsidies and income tax relief for high-tech enterprises, although their effects were heterogeneous.Research limitations/implicationsThis study observes a new theoretical discovery that when the financing constraints do not limit R&D investment, innovation-driven strategies remain effective tools to stimulate the R&D investment of sports firms.Practical implicationsThe findings provided practical guidance for both government–industry policymakers and sport business managers to prioritize the identified areas of significance when promoting R&D.Originality/valueFirst, this study focused on sport firms, which constitute a quickly growing industrial sector in China. The findings offered important insights for the government as well as corporate management with regard to promoting new industries and new enterprises. Second, this paper analyzed the effects of three special innovation-driven policies on R&D investment and explored enterprise innovation development in more detail. Third, this paper discussed not only the effects of innovation-driven policies on R&D investment but also the heterogeneity of their effects. The related conclusions could help improve the development, implementation and assessment of innovation-driven policies.

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“…As a rising industry, there are numerous new start-ups emerging in the sports industry in China. Yet, smaller, newer, and more technology-intensive firms face financial and corporate governance constraints [12,13] despite recognizing the importance and relevance of research and development activities for the firm's long-term well-being [14]. Today, many sports enterprises face financing and corporate governance constraints, which have hampered their market competitiveness, highlighting the significance of examining the influence of these concepts on research and development.…”

Section: Introductionmentioning

confidence: 99%

Corporate Governance Structure, Financial Capability, and the R&D Intensity in Chinese Sports Sector: Evidence from Listed Sports Companies

2019

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Innovations are the foundation of an enterprise's sustainable development, which is particularly important for sports firms in an evolving Chinese sport industrial environment. Analyzing publicly-listed sports firms on The New Third Board (NTB) in China, this study examined the influence of corporate financial capability and corporate governance structure on firms' R&D intensity through a series of multiple regression models. Findings revealed that corporate financial capability is an important determinant of R&D intensity, and corporate governance structure has a small but meaningful effect on R&D intensity. Specifically, for Chinese sports firms, several financial capability indicators, such as return on equity, accounts receivable turnover, assets turnover, and profit growth rate, have positive relationships with R&D intensity; however, other financial capability indicators, such as leverage and cash flow, have negative relationships with R&D intensity. Limited evidence was found to support the notion that corporate governance significantly influences R&D intensity, although sports firms with good governance mechanisms are more likely to increase the positive effects of financial capabilities on R&D intensity while decreasing the negative effects. Discussions were centered on planning and executing R&D activities in sports companies.

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Making Waves: To Innovate or Be a Fast Second?

Cited by 9 publications

References 37 publications

What promotes R&D? Comparative evidence from around the world

What promotes R&D? Comparative evidence from around the world

Innovation-driven development strategy and research development investment: a case study of Chinese sport firms

Corporate Governance Structure, Financial Capability, and the R&D Intensity in Chinese Sports Sector: Evidence from Listed Sports Companies

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