Government subsidies have a direct impact on firms' innovation strategies. The game relationship between the government, the subsidized firm and its competitors under different subsidy strategies affects firms' innovation behavior and thus innovation performance. This paper uses a dynamic evolutionary game theory approach based on cost-benefit differences to analyse the mechanisms by which government subsidy strategies affect firms' innovation strategies. It is found that the marginal benefits of a firm's innovation strategy will directly affect the game outcome, indicating that the choice of innovation strategy depends on the maximization of individual firm's interests. At the same time, a firm's innovation strategy is influenced by the firm's own innovation ability and competitors' innovation strategy, and there are two game equilibria. Government subsidies have a positive contribution to the innovation strategy choice of subsidized firms, but have a crowding-out effect on non-subsidized competing firms. The strength of the penalty (the efficiency of the implementation of government subsidies), the marginal revenue of the subsidized firms' rational use of government subsidies and the competitors' strategic choices will directly affect the game outcome.
The integrated development of various industries in China is essential for promoting long-term sustainable development and achieving carbon neutrality. In this study, we analyze panel data from 30 Chinese provinces (excluding Tibet, Hong Kong, Macao, and Taiwan) covering the period between 2005 and 2020 to investigate the impact of collaborative agglomeration between productive service and manufacturing industries on green development efficiency. We utilize a mediation effect model to examine the role of technological innovation in driving the relationship between industrial collaborative agglomeration and regional green development efficiency. Our findings reveal that the collaborative agglomeration of the productive service and manufacturing industries has a significant positive effect on improving regional green development efficiency. We also identify a non-linear relationship, indicating a double threshold effect. Technological innovation plays an important role in facilitating industrial collaborative agglomeration and promoting the efficiency of regional green development. Moreover, our results demonstrate significant regional heterogeneity in the impact of industrial collaborative agglomeration on regional green development efficiency. Based on these findings, we propose several policy recommendations to achieve high-quality regional economic development, including improving the quality of industrial synergy and agglomeration between regions, strengthening the intermediary promotion role of technological innovation, and enhancing regional green productivity.
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