Are R&amp;D subsidies effective? The effect of industry competition

Xiang, Xin

doi:10.5018/economics-ejournal.ja.2019-2

Cited by 3 publications

(3 citation statements)

References 19 publications

(26 reference statements)

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“…Profit is measured by the return-on-asset ratio, denoted as ROA it , because revenue indicates how much a corporation earns, which is the primary indicator of solvency [ 7 , 16 ]. Growth is also included [ 58 , 59 ], denoted as RevGrowth it .…”

Section: Methodsmentioning

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: Methodsmentioning

confidence: 99%

Financial constraints, government subsidies, and corporate innovation

Wang

Cao

et al. 2021

PLoS ONE

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“…To exclude the possible interference of other factors on the influence of green innovation in manufacturing enterprises, with reference to other research on enterprise innovation [63][64][65][66], the following controlled variables are selected: (1) Enterprise size (SCA), measured by the logarithm of the enterprise's total assets; (2) Ownership concen-tration (OC), measured by the shareholding ratio of the largest shareholder; (3) Current ratio (CR), measured by the ratio of current assets to current liabilities; (4) Cash flow ratio (CFR), measured by the ratio of current cash flow to current liabilities; (5) Return on equity (ROE), measured by the ratio of profit after tax to net assets; (6) Loan of asset ratio (LEV), measured by the ratio of total liabilities to total assets; (7) Operating income growth rate (OIG), measured by the ratio of growth in operating income for the current year to total operating income for the previous year; (8) Net profit (LNNP), measured by the logarithm of net income. The variable definition and description are shown in Table 1.…”

Section: Controlled Variablesmentioning

confidence: 99%

Promote Green Innovation in Manufacturing Enterprises in the Aspect of Government Subsidies in China

Tang

2022

IJERPH

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Green innovation is vital for manufacturing enterprises to achieve a balance between economic, environmental and social benefits. This paper empirically investigates the mechanisms of government subsidies, R&D investment and public participatory environmental regulation on green innovation in manufacturing enterprises, selecting a sample of 1308 manufacturing firms listed on Chinese A-shares from 2010–2019. The results show that government subsidies can significantly promote green innovation in manufacturing enterprises, with private enterprises being more pronounced. R&D investment plays a mediating role in green innovation in manufacturing enterprises, while public participatory environmental regulation has a negative impact. The moderating effect of public participatory environmental regulation on government subsidies is different on different green patents, with a more negative effect on green invention patents than on green utility model patents. Public participatory environmental regulation has a negative moderating effect on the green innovation of state-owned manufacturing enterprises while having no significant effect on private manufacturing enterprises.

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“…Usually, s(τ)/s ′′ (τ) pair distribution function F is insensitive, if the normal distribution is used, the substitution error is very small [27]. Namely:…”

Section: Estimation Of Asymptotic Covariance Matrixmentioning

confidence: 99%

Research on the relationship between government subsidies, R&D investment and high-quality development of manufacturing industry

Guan

2022

Applied Mathematics and Nonlinear Sciences

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Taking the mixed cross-sectional data of large and medium-sized industrial enterprises in Shanghai from 2014 to 2021 as the research sample, this paper empirically analyses the impact of government subsidies and R&D investment on the high-quality development of the manufacturing industry. First, the quantile regression model is established to analyse the relationship among the three factors, and the asymmetric linear loss function is introduced to obtain the point estimation of quantile. According to the Moivre–Laplace limit theorem, the asymptotic distribution is obtained; the sample quantile function is calculated and the fitting residual of quantile regression is used to estimate the asymptotic covariance matrix. The model was tested by goodness-of-fit criterion; it can more comprehensively describe the characteristics of distribution, so as to get a comprehensive conclusion. The experimental results show that: with increase of the quantile, the advantage gradually increases. Medium-sized enterprises have a less significant ‘inverted U’ relationship at 0.8, while large enterprises have a more significant ‘U’ relationship at 0.2–0.5. It can effectively reduce the estimation deviation and reduce the root mean squared error, so as to improve the estimation accuracy.

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Are R&D subsidies effective? The effect of industry competition

Cited by 3 publications

References 19 publications

Financial constraints, government subsidies, and corporate innovation

Financial constraints, government subsidies, and corporate innovation

Promote Green Innovation in Manufacturing Enterprises in the Aspect of Government Subsidies in China

Research on the relationship between government subsidies, R&D investment and high-quality development of manufacturing industry

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