Do more subsidies promote greater innovation? Evidence from the Chinese electronic manufacturing industry

Do Government R&D Subsidies Cultivate Enterprises’ Voluntary National/Industry Standard-Setting for Sustainable Development?

“…Ergo, only when government subsidies are sufficient are enterprises willing to invest in standard R&D activities. Our result is different from the conclusion of [72] that government subsidies for R&D have a reverse U-shaped relation with product and technology innovation. This may be due to R&D activities in product and technology stimulated by government subsidies crowding out more standard R&D activities [56,65].…”

“…It contributes to the literature on sustainable development and N/IS-innovation in the following ways: First of all, different from the existing literature concerned with the impact of government subsidies on product and technology innovation, this study focuses on innovation of N/IS. We found that government subsidies have a U-shaped relationship with N/IS-setting for sustainable development, which is different from the reverse U-shaped relationship with patents [72]. Second, although prior studies acknowledge the essential role of government subsidy for R&D in innovation performance, there is limited empirical evidence on contingent influence on the relationship.…”

The Influences of Government Subsidies on Performance of New Energy Firms: A Firm Heterogeneity Perspective

“…However, government investment has different impacts on technological innovations because of the different ownership structures of the industry. The impact of subsidies is more significant for non-state-owned enterprises than state-owned ones [26]. When a state-owned economy holds a higher proportion, government investment will have a smaller impact on technological innovation [27].…”

“…When the lag period is added, government subsidies have a significant role in promoting R&D input. Many scholars have shown that increasing government subsidies can improve firm performance by promoting the technological innovation activities of enterprises [26,[32][33][34]. However, R&D activities are high-risk creative activities.…”

Public guarantee schemes, corruption and gender: a European SME-level analysis

“…Among the available public policy tools to attempt to positively influence entrepreneurship, particular attention has been given to public subsidies or grants, especially the ones designed with the objective to stimulate firm-level innovation (e.g., De Blasio et al 2018). Indeed, a subsidy earmarked for entrepreneurship -also known in policymaking as a public guarantee scheme -among other effects can: (a) encourage private R&D investment (Liu et al 2019) by improving brand name capital when autonomous R&D investment of a small-and medium-sized enterprise (SME) is perceived to be too risky (e.g., Meuleman and De Maeseneire 2012); (b) facilitate a firm's access to external sources of finance to alleviate credit constraints (Martí and Quas 2018); (c) be a cost-effective public intervention to spur credit creation (OECD 2013); and (d) benefit banks through risk sharing and saving on regulatory capital. Moreover, subsidies are also generally perceived to be more beneficial for smaller, younger firms rather than for larger, older ones.…”