R&amp;D subsidies in permissive and restrictive environment: Evidence from Korea

Koh, Yumi; Lee, Gea M.

doi:10.1016/j.respol.2022.104620

Cited by 10 publications

(5 citation statements)

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“…Although this research path is gaining prominence in academic circles for examining the effects of GFP policies, the number of relevant studies is currently insufficient. Currently, studies on the synergistic effects or coupling effects of environmental policy instruments such as environmental regulation [34], environmental subsidies [53], R&D subsidies [54], carbon trading [55], and public monitoring [56] on GTI are available. Few studies have incorporated GFP into the development of an environmental policy system.…”

Section: The Countermeasures To Stimulate the Innovation Incentive Ef...mentioning

confidence: 99%

The Polarization Effect and Mechanism of China’s Green Finance Policy on Green Technology Innovation

Zhang

Dong

2023

Sustainability

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The advancement of green technology innovation (GTI) is crucial for facilitating green development. China, the largest carbon-emitting economy, should prioritize the acceleration of GTI to augment global green economic growth and reduce carbon emissions. Green finance policy (GFP) is a common instrument for encouraging enterprises to develop GTI. This study, therefore, takes the pilot policy of China’s Green Finance Reform and Innovation Pilot Zone as a “quasi-natural experiment” and uses the difference-in-differences method to explore the impact and mechanism of GFP on Chinese enterprises’ GTI. Based on the empirical analysis using microdata from Chinese industrial enterprises from 2015 to 2021, the following conclusions can be drawn. First, GFP has a green innovation polarization effect. It facilitates the development of GTI in green enterprises while hindering the progress of GTI in polluting enterprises. Second, GFP enhances the GTI of green enterprises by promoting innovative behaviors and factor allocation optimization behaviors. However, GFP reduces the GTI of pollution enterprises by promoting non-innovative investments and reducing the efficiency of factor allocation optimization. Third, the combination of policies utilizing GFP, environmental subsidy, and R&D subsidy can effectively increase the GTI of polluting enterprises without compromising the GTI of green enterprises. This study offers empirical evidence and policy recommendations for establishing a green finance system in developing countries.

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Section: The Countermeasures To Stimulate the Innovation Incentive Ef...mentioning

confidence: 99%

The Polarization Effect and Mechanism of China’s Green Finance Policy on Green Technology Innovation

Zhang

Dong

2023

Sustainability

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“…Scholars have also explored the micro-foundations of breakthrough innovation, including the CEO career horizon (Cho and Kim, 2017) and the founding team's human capital (Tzabbar and Margolis, 2017). Recent research has empirically tested micro and macro factors that may affect the likelihood of producing breakthrough innovation (Tzabbar et al, 2023;Byun et al, 2023;Koh and Lee, 2023) and has explored breakthrough innovation through a temporal approach (Chen and Habibi, 2023), but our understanding of how breakthrough innovation generates over time is limited. In addition, previous studies have emphasized the decisive role of TMTs in high-impact innovations, such as radical innovation (Alexander and Van Knippenberg, 2014;Wilden et al, 2023) and exploratory innovation (Alexiev et al, 2010;Wang et al, 2019), but how TMTs affect breakthrough innovations is still underexplored.…”

Section: Breakthrough Innovationmentioning

confidence: 99%

“…Second, our work adds new knowledge to the breakthrough innovation literature. The prior research has discussed how to create breakthrough innovations (Mascitelli, 2000;O'Connor and Rice, 2001), and explored relatively stable features/factors that may affect breakthrough innovation (Zhou et al, 2005;Srivastava and Gnyawali, 2011;Jin and Shao, 2022;Koh and Lee, 2023). Recent research has provided a temporal approach to managing innovation (Chen and Habibi, 2023).…”

Section: Theoretical Contributionsmentioning

confidence: 99%

“…, 2023; Byun et al. , 2023; Koh and Lee, 2023) and has explored breakthrough innovation through a temporal approach (Chen and Habibi, 2023), but our understanding of how breakthrough innovation generates over time is limited. In addition, previous studies have emphasized the decisive role of TMTs in high-impact innovations, such as radical innovation (Alexander and Van Knippenberg, 2014; Wilden et al.…”

Section: Theoretical Background and Literature Reviewmentioning

confidence: 99%

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TMT's cognitive frame and breakthrough innovation

Yang,

Shao

2023

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PurposeThis paper aims to reveal how different types of events and top management teams' (TMTs’) cognitive frames affect the generation of breakthrough innovations.Design/methodology/approachDrawing on the event system theory and upper echelon theory, this study chose a Chinese manufacturing enterprise as the case firm and conducted an exploratory single-case study to unpack how breakthrough innovation generates over time.FindingsBy conducting the in-depth case analysis, the study revealed that firms do not produce breakthrough innovation in the catch-up stage and parallel-running stage but achieve it in the leading stage. It also indicated that when facing proactive events in the catch-up stage, TMTs often adopt a contracted lens, being manifested as consistency orientation, less elastic organizational identity and narrower competitive boundaries. In addition, they tend to adopt a contracted lens when facing reactive and proactive events in the parallel-running stage. In the face of reactive and proactive events in the leading stage, they are more inclined to adopt an expanded lens, being manifested as a coexistence orientation, more elastic organizational identity and wider competitive boundaries.Originality/valueFirst, by untangling how TMT's cognitive frame functions in breakthrough innovations, this paper provides a micro-foundation for producing breakthrough innovations and deepens the understanding of upper echelon theory by considering the cognitive dimension of TMTs. Second, by teasing out several typical events experienced by the firm, this paper is the first attempt to reveal how events affect the generation of breakthrough innovation. Third, the work extends the application of the event system theory in technological innovation. It also provides insightful implications for promoting breakthrough innovations by considering the role of proactive and reactive events a firm experiences and TMT's perceptions.

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“…During the implementation of R&D subsidy policies, to control fiscal risk and achieve robust policy effects, the government often selectively funds enterprises with the greatest development potential or R&D projects of high socio-economic value (Bloom et al, 2019;Koh & Lee, 2023). Considering that these enterprises have a limited dependence on fiscal subsidies, R&D subsidies may have a limited impact on corporate R&D investment or even generate crowding-out effects (Wallsten, 2000), making the true policy impact difficult to observe.…”

Section: Introductionmentioning

confidence: 99%

Policy Design and Efficiency of R&D Subsidy

Liu,

2024

Preprint

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Optimizing the allocation of innovation resources and strengthening the importance of innovation are the main engines of modern growth. Research and development (R&D) subsidy policy is an essential means to guide enterprises to increase R&D investment, enhance the efficiency of fiscal subsidy funds, and leverage higher-level corporate R&D investment at the core of policy design. This study uses data on applications for and acceptance of R&D subsidy projects and provides the first comparative analysis of the policy’s effects and fund-use efficiency between the resource-leaning (increased subsidy rate) and inclusive (increased number of funded enterprises) models of R&D subsidies. This study constructs a theoretical model based on the actual process of R&D subsidies, which includes three stages: enterprises’ subsidy application choices, government review decisions, and enterprises’ R&D behavior. It estimates the model parameters based on enterprise-level data regarding R&D subsidy applications and granted subsidy amounts. The empirical results demonstrate that the rules of current R&D subsidies reflect government preferences and selection of subsidy recipients. In this context, one unit of R&D subsidy can engender an increase of 4.51 units in corporate R&D investment and an enhancement of 0.98 units in net social benefits. Simultaneously, resource-leaning subsidies tend to attract leading enterprises, whereas inclusive subsidies may induce adverse selection, with the former exhibiting a higher fiscal expenditure efficiency. The conclusions of this research offer empirical support for the scientific formulation and optimization of R&D subsidy systems under various policy objectives, underscoring the complexity of designing measures that balance effectiveness with efficiency. By shedding light on the differentiated impacts of resource learning and inclusive subsidy designs, this study contributes valuable insights into the nuanced relationship between policy design and intended outcomes in the context of innovation-driven development. JEL Classification: H29; L59; O31

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R&D subsidies in permissive and restrictive environment: Evidence from Korea

Cited by 10 publications

References 60 publications

The Polarization Effect and Mechanism of China’s Green Finance Policy on Green Technology Innovation

The Polarization Effect and Mechanism of China’s Green Finance Policy on Green Technology Innovation

TMT's cognitive frame and breakthrough innovation

Policy Design and Efficiency of R&D Subsidy

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R&D subsidies in permissive and restrictive environment: Evidence from Korea

Cited by 10 publications

References 60 publications

The Polarization Effect and Mechanism of China’s Green Finance Policy on Green Technology Innovation

The Polarization Effect and Mechanism of China’s Green Finance Policy on Green Technology Innovation

TMT's cognitive frame and breakthrough innovation

Policy Design and Efficiency of R&amp;D Subsidy

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Product

Resources

About

Policy Design and Efficiency of R&D Subsidy