The staged government intervention, situational characteristics and innovation: Evidence from China

Abstract

BACKGROUND: Innovation practice of the enterprise is a complicated dynamic process which shows different environmental characteristics and different degrees of uncertainty and externality in each stage of activity. Therefore, it is important to consider the government involvement in enterprise innovation initiatives and interventions in the different stages of innovation is a question to be explored. PURPOSE: This research study examines staged government interventions, situational characteristics impact in manufacturing innovative enterprises in china. DESIGN/METHODOLOGY/APPROACH: This quantitative study used the panel data including 443 manufacturing innovative enterprises in China from 2008 to 2011 to analyze the differential relationship between the government intervention and enterprises' innovation performance by building the framework of "government intervention -situational characteristicsinnovation performance". FINDINGS:The empirical results show that single-stage government intervention produces an inhibitory effect on enterprises' innovation performance, but multi-stage government intervention has a significant role in promoting their performance, especially the combination of the initial stage of innovation and the stage of innovation marketization. The moderation of the situational characteristics on the relationship between the government intervention and enterprises' innovation performance has a larger difference. CONCLUSION: This paper supplements and extends previous research on institutions and innovations by the analysis of the relationship between government intervention, enterprise innovation, and regulatory mechanisms of enterprise R&D internationalization strategy, industry and regional characteristics. We deeply explore the transmission mechanism and internal process of government support in enterprise innovation, and effectively promote the development of the theory and practice of government support and enterprise innovation.

Impact of Public Support for Innovation on Company Performance: Review and Meta-Analysis

“…Based on the above, Yan, Yanghao and Bhatti and Lin and Luan [30,56] point out that several countries reinforce their policies to encourage innovation by combining tax incentives and financing instruments (subsidized loans, economic subsidies, among others). The analysis of the effects of these policies presents divergent results, although most conclude that the additionality effect predominates (complementarity between public and private gestures) and the denial of the crowding out hypothesis (substitution between public and private expenditures) [7,8,30,57].…”

“…[29], Yan, C., Yanghao, Z. and Bhatti, M.H. [30], Beck, M., Lopes-Bento, C. and Schenker-Wicki, A. [31], Cin, B.C., Kim, Y.J.…”

Analysing stimuli and barriers, failure and resilience in companies’ internationalization: a systematic and bibliometric review

“…The blue-colored Cluster 3 (Figure 4) represents an essential and multi-developed pillar to the architecture of internationalization through an approach that values the resources and Systematic and bibliometric review capacities applied to leverage innovation and in the sense of obtaining competitive advantage and growth (Table 1). Hendriks et al (2018) highlight how managers fear that expanding into international markets may bring about financial ruin with the external barriers proving key and inhibiting companies from acting while Yan et al (2020) demonstrate that the absence of governmental interventions and political changes may bring about a reductive impact.…”

“…Hendriks et al (2018) highlight how managers fear that expanding into international markets may bring about financial ruin with the external barriers proving key and inhibiting companies from acting while Yan et al (2020) demonstrate that the absence of governmental interventions and political changes may bring about a reductive impact.…”