The impact of government support and market competition on China's high-tech industry innovation efficiency as an emerging market

Wan, Qunchao; Ye, Jiangfeng; Zheng, Li; Tan, Zhihong; Tang, Shiyi

doi:10.1016/j.techfore.2023.122585

Cited by 17 publications

(3 citation statements)

References 91 publications

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“…providing a theoretical analysis for understanding the systematic structure of the hightech industry market field. When existing research discusses the relationship between the market and high-tech industries, the market is often regarded as a certain institutional background, such as the innovation efficiency of high-tech industries in emerging markets [51], how high-tech service industries improve brand innovation in emerging markets [52], the influencing factors of high-tech industries entering emerging markets [53], etc.…”

Section: System Structure Of High-tech Industry Market Fieldmentioning

confidence: 99%

What Kind of Market Is Conducive to the Development of High-Tech Industry? Configuration Analysis Based on Market Field Theory

Huang

2023

Systems

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The high-tech industry is important in supporting China’s construction of a high-quality modern economic system. The high-tech industry markets are spaces for the supply and transaction of high-tech products. The existing research lacks in-depth discussions on the constituent factors and shaping mechanisms of the high-tech industry market. This paper constructs the market field configuration model of the high-tech industry and studies the impact of the market field configuration of the high-tech industry in 30 provinces of China on the innovation performance of the high-tech industry using the fuzzy-set qualitative comparative analysis method. The findings are as follows: (1) The three structural variables of network, institution, and cognition cannot individually constitute the necessary conditions for explaining the high or low innovation performance of high-tech industries; (2) Three high-tech industry market field configurations can lead to high innovation performance, and the condition combination among different configurations has a substitution effect; (3) Four high-tech industry market field configurations will lead to low innovation performance, in which the lack of multiple conditions in the network, system, and cognition is the main reason for the market failure. The research conclusions of this study highlight the cognitive role of market construction and the configuration characteristics of effective high-tech industry market fields, which provides practical enlightenment for China to improve the innovation performance of high-tech industries.

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Section: System Structure Of High-tech Industry Market Fieldmentioning

confidence: 99%

What Kind of Market Is Conducive to the Development of High-Tech Industry? Configuration Analysis Based on Market Field Theory

Huang

2023

Systems

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“…Moreover, the granting of industrial land at lower prices allows low-end industries, which should have been eliminated to have better living spaces. The over-competitive market environment inhibits the development of innovative industries, which has an obvious 'crowding out effect' on innovation; thus, it is not conducive to improving innovation efficiency [34][35][36]. Worse still, the excessive intervention of land finance in the economy undermines the market environment of fair competition, causing enterprises with innovative capabilities to lose their willingness to further improve their level of innovation due to a lack of policy support [35].…”

Section: Introductionmentioning

confidence: 99%

Drinking Poison to Quench Thirst: Local Government Land Financial Dependence and Urban Innovation Quality

Xu,

Yang,

Yang

et al. 2024

Land

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Many emerging markets rely on land financing, whereby land grants are used to raise funds for the government. In the short term, land financing eases the government’s fiscal deficit and boosts regional economic development. However, the long-term implications of such behaviour have not been adequately discussed. This study focuses on the relationship between local government land finance dependence (LGLFD) and urban innovation quality (UIQ). We find that LGLFD significantly inhibits the improvement of UIQ, and this inhibition occurs through three main channels: changing government spending preferences, reducing financial efficiency, and deteriorating the institutional environment. Our empirical study analyses 3662 samples from 264 Chinese cities from 2003 to 2016, confirming our research hypothesis. Further research finds that there is significant heterogeneity in the effect of LGLFD on UIQ. Based on these conclusions, some policy implications are proposed.

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“…With a traditional focus on facilitating the growth of companies in vital industries by promoting or restricting new entry (e.g., van Beers and Sadowski, 2003), industrial policy has just recently become concerned with the global competitiveness of innovative firms in strategic emerging industries (Boeing, 2016;Prud'homme et al 2018;Li et al 2022). With ample governmental subsidies available to facilitate innovation and competitiveness of companies, policy tools aimed at just picking winners, such as innovative firms in each sector (e.g., Lazzarini, 2015;Perez-Aleman and Alves, 2017;Wan et al 2023) might not generate the desired results as the market power of these firms in upstream and downstream markets might have some countervailing effects (Chen and Naughton, 2016;Dai et al 2018;Park et al 2020;Kao et al 2023).…”

mentioning

confidence: 99%

Picking winners in strategic emerging industries using government subsidies in China: the role of market power

Shi

Sadowski

Zeng

et al. 2023

Humanit Soc Sci Commun

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This study explores the effects of government subsidies on company labour productivity in strategic emerging industries under conditions of market power in downstream and upstream markets. A sample of 1392 listed companies from emerging industries in China from 2006 to 2019 is used. Labour productivity will be lower in companies with high seller power. The positive effect of subsidies on labour productivity will be enhanced when firms possess higher seller power, whereas the positive effect of subsidies on labour productivity will be weakened when firms possess higher buyer power. Heterogeneity analysis shows that the role of market power is more evident for domestic enterprises compared to foreign investment companies. The mechanisms of picking winners based on government subsidies should take the effects brought by various degrees of market power into account.

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The impact of government support and market competition on China's high-tech industry innovation efficiency as an emerging market

Cited by 17 publications

References 91 publications

What Kind of Market Is Conducive to the Development of High-Tech Industry? Configuration Analysis Based on Market Field Theory

What Kind of Market Is Conducive to the Development of High-Tech Industry? Configuration Analysis Based on Market Field Theory

Drinking Poison to Quench Thirst: Local Government Land Financial Dependence and Urban Innovation Quality

Picking winners in strategic emerging industries using government subsidies in China: the role of market power

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