Relationships among Government Funding, R&D Model and Innovation Performance: A Study on the Chinese Textile Industry

Abstract

The textile industry is a traditional pillar industry of the national economy in China. The strategic goal of Chinese innovation is to upgrade and transform traditional industries and make them develop in coordination with high-tech industries, so as to realize sustainable industrial development. At the core of industrial sustainable development, the innovation of the textile industry in China has become an important issue worthy of attention. Based on resource-based theory and signal transfer theory, the relationship between government funding, R&D models and the innovation performance of the Chinese textile industry is studied. The results show that government funding has a significant, direct promoting effect on the internal R&D and science-based cooperation of enterprises. Government funding indirectly promotes market-based cooperation through internal R&D. The promoting effect of internal R&D on innovation performance is greater than that of cooperative R&D. Internal R&D and cooperative R&D have more promoting effects on R&D reserve performance than those on market performance. Government funding indirectly promotes innovation performance through the mediation of internal R&D and science-based cooperation. The threshold effect of cooperative R&D indicates that only when the cooperative R&D intensity exceeds the threshold can government funding foster innovation performance more effectively. The conclusions can provide theoretical guidance for the formulation of innovation policy.

Mediating Role of Firm R&D in Creating Product and Process Innovation: Empirical Evidence from Norway

“…On the other hand, we showed that government funding could enhance firms' innovation through research and development. Our result corroborates that of Zhang et al (2020), which revealed that government funding has an indirect influence on the firm process and product innovation. However, the results do not support the finding of Kang and Park (2012), which showed that the government funding directly and indirectly promotes innovation by stimulating R&D of firms and domestic cooperation.…”

“…These results pointed out the crucial role of firms' R&D as a mediator of government funding and triple-helix cooperation in the processes of the creation of product and process innovation in Norway. These results are consistent with the studies from Jiang et al (2018), Anzola-Román et al (2018; Zhang et al (2020).…”

“…Moreover, government subsidies can minimize the prices and risk of R&D activities, create financial leverage and spill-over effects, also encourage private investment by firms in basic research and development that have a positive impact on product development of the firm and extension of new goods (Hewitt-Dundas and Roper 2010). Moreover, government funding affects scientific and technological cooperation positively (Zhang et al 2020).…”

Will Internet Market Newness Improve Performance? An Empirical Study on the Internet Market Innovation of Offline Retailers in China

“…There has been a lack of research on the combined effect of AMC and innovation. Although innovation is considered to be the key driving force for enterprises to maintain long-term and lasting competitive advantages [78,79], some studies have shown that innovation may be negatively correlated with firm performance [8,36]. The theoretical framework of "capability-activity-performance" [44,80] suggests that the enhancement of an enterprise's AMC is a key mechanism for driving the achievement of superior performance.…”

The Relationship Between Collaborative Innovation Risk and Performance of Industrial Parks

“…In dynamic environment, high-tech enterprises can use resource-based theory and Dynamic Capability (DC). Gradually, innovation activities will require more and more resources, and simple resource accumulation will be difficult to use for innovation, economic efficiency or risk reduction of collaborative innovation (Zhang, Z. et al 2020). Therefore, the risk of collaborative innovation is of great significance to the intellectual property rights of enterprises.…”