Spillovers of innovation subsidies on regional industry growth: Evidence from China

Guo, Yan; Zhang, Haochen

doi:10.1016/j.econmod.2022.105869

Cited by 9 publications

(2 citation statements)

References 42 publications

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“…However, for the economic recovery of a region, in addition to market entities directly supported by the government, market entities within the region that do not receive direct support will also be affected by spillover effects. Therefore, analyzing subsidy effects only at the micro level is not conducive to a deeper understanding of the role of government support policies in promoting economic growth (Guo & Zhang, 2022). Most previous studies on shock response have shown that supportive policies implemented by governments, such as commonly used fiscal and monetary policies, have played a positive role in regional economic recovery (Eggertsson, 2008;Mishkin, 2009).…”

Section: Evaluating the Economic Impact Of Supporting Policies During...mentioning

confidence: 99%

Impact of Government Support Policies on Regional Economic Resilience Under the Covid-19 Outbreak

Fan,

Weng,

Tian

2024

Technological and Economic Development of Economy

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Using the policy package pilot implemented in Hubei Province, China, in April 2020 as a natural experiment, we use the synthetic control (SC) and synthetic difference in differences (SDID) methods to estimate the impact of the Chinese government’s support policy on the economic resilience and to analyze the mechanisms by which it impacts. This study finds that the policy package has contributed to the growth of economic resilience in the pilot provinces, with the policy package increasing the average economic resilience of the pilot provinces by 0.062 compared to their potential resilience. The validity and robustness of the above conclusions are objectively confirmed by multidimensional quantitative outcomes such as placebo tests, ranking tests, and replacements in calculating resilience. The mechanism analysis shows that the investment in real estate development, the stimulus for consumption, and the core industry development are virtual channels for the policy package to promote economic resilience growth in the pilot provinces. Moreover, traditional investment in transportation fixed assets plays a minor role. This paper quantitatively corroborates the academic idea that government governance capacity affects regional economic resilience (RER), and research can provide empirical support for regional economic recovery and policy support under a major crisis.

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Section: Evaluating the Economic Impact Of Supporting Policies During...mentioning

confidence: 99%

Impact of Government Support Policies on Regional Economic Resilience Under the Covid-19 Outbreak

Fan,

Weng,

Tian

2024

Technological and Economic Development of Economy

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“…Political ties hinder government's ability to fund high-quality innovation subsidies and even lower industry R&D intensity, a key indicator of innovation quality (Tian et al, 2019 ; Yao et al, 2022 ). Government subsidies, although encouraging independent innovation in high-tech industries, have a negative impact on company performance in both low-tech and high-tech companies (Wu and Hu, 2020 ; Guo and Zhang, 2022 ). According to several studies, knowledge asymmetry between government and business is a major cause of squandered subsidies (Chen et al, 2020 ; Khan and Krishnan, 2021 ; Krukowski and DeTienne, 2021 ; Mas and Gómez, 2021 ; Kohlbrecher and Merkl, 2022 ).…”

Section: Literature Reviewmentioning

confidence: 99%

‘Guidance' or ‘Misleading'? The government subsidy and the choice of enterprise innovation strategy

Ding

Wang²,

Liu³

et al. 2022

Front. Psychol.

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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.

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Institutions and Tools for Activating the Export Potential of High-Tech Industry at the Regional Level

Nikitaeva,

Deynichenko

2023

Lecture Notes in Information Systems and Organisation

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Spillovers of innovation subsidies on regional industry growth: Evidence from China

Cited by 9 publications

References 42 publications

Impact of Government Support Policies on Regional Economic Resilience Under the Covid-19 Outbreak

Impact of Government Support Policies on Regional Economic Resilience Under the Covid-19 Outbreak

‘Guidance' or ‘Misleading'? The government subsidy and the choice of enterprise innovation strategy

Institutions and Tools for Activating the Export Potential of High-Tech Industry at the Regional Level

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