The importance of large firms for generating economic value from subsidized technological innovation: A regional perspective

Li, Fengshu; Andries, Petra; Pellens, Maikel; Xu, Jianzhong

doi:10.1016/j.techfore.2021.120973

Cited by 15 publications

(7 citation statements)

References 63 publications

(69 reference statements)

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“…Several studies have also examined the behavioral additionality of innovation subsidy ( Clarysse et al, 2009 ; Méndez-Morales and Muñoz, 2019 ). Using both theoretical ( Kleer, 2010 ; Takalo and Tanayama, 2010 ; Su and Li, 2021 ) and empirical models ( Feldman and Kelley, 2006 ; Meuleman and De Maeseneire, 2012 ; Li et al, 2021 ), they test the impact of innovation subsidy on the behavioral decisions of external investors. Through the examination and certification of firms’ R&D technological capabilities by government agencies, innovation subsidy can send signals that can attract more venture capital to support firms’ R&D innovation ( Lerner, 2000 ; Liu et al, 2019 ; Li et al, 2021 ).…”

Section: Introductionmentioning

confidence: 99%

Government innovation subsidy, executives’ academic capital and innovation quality: Evidence from pharmaceutical companies in China

Xia

Fan²,

Zuo³

et al. 2023

Front. Psychol.

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The government employs innovation subsidies as a key incentive strategy to promote companies to innovate more technically. This study analyses how innovation subsidies influences the quality of corporate innovation. We create an innovation quality index for pharmaceutical corporations using categorizing data from patent applications submitted by pharmaceutical companies. Using data from 180 listed Chinese pharmaceutical companies between 2010 and 2020, this study proposes a panel regression model to assess the influence of government innovation subsidies on innovation quality, as well as the moderating effect of CEOs’ academic capital. How well innovations are subsidized is also affected by the heterogeneity of property rights. Innovation subsidy has a greater and more positive impact on non-SOEs. This article demonstrates that CEOs with academic credentials and executives with ties to the pharmaceutical industry have a variety of moderate effects. The research offers novel suggestions for enhancing business creativity and the innovation subsidy programme.

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Section: Introductionmentioning

confidence: 99%

Government innovation subsidy, executives’ academic capital and innovation quality: Evidence from pharmaceutical companies in China

Xia

Fan²,

Zuo³

et al. 2023

Front. Psychol.

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show abstract

“…, 2018). Li et al. (2021) found that government subsidies have a significant double threshold effect on the commercial/economic value of scientific and technological achievements.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Referring to relevant literature (Li et al. , 2016, 2021; Mao et al. , 2019), we consider that the social welfare coefficient is μ=0.05, the maximum service price that the demander is willing to pay is described separately according to the two cases above: (1) When ρiB=ρD, we consider ρiB=ρD=ρ=1; (2) When ρiB≠ρD, we consider ρiB=1,ρD=0.8.…”

Section: Numerical Analysismentioning

confidence: 99%

Two-level cooperation and competition strategies of government and technology service platforms: considering government subsidies

Chen

Yao

et al. 2022

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PurposeThe purpose of this paper is to analyze the optimal competition or cooperation decision between technology service platforms and governments in the context of fierce competition within urban agglomerations.Design/methodology/approachBased on the cooperation and competition game model, this study builds a two-level model for government and technology service platforms considering three cases: perfect competition, platform cooperation and government-led cooperation.FindingsBy analyzing the optimal strategies of the government and a platform in three cases, the research shows that choosing appropriate cooperation in a competitive situation is beneficial to both the government and the platform. Government-led cooperation is conducive to increasing social welfare. From the perspective of the platforms, if they actively seek cooperation, they can obtain higher subsidies and profits. The more intense the competition is, the higher the profits and social welfare generated from the platforms' active cooperation.Practical implicationsThe contribution of this study relates to the development of technology service platforms in urban agglomerations. As local governments and platforms continuously undertake decision-making processes, this study constructs quantitative models to analyze the advantages and disadvantages of competition and cooperation. It is worth noting that relying on government subsidies to maintain the sustainable development of technology service platforms is not a long-term solution. Government subsidies play a vital role in the initial development of technology service platforms. The analysis results are in line with Guo et al. (2016), Jung and Feng (2020) and Li (2021) conclusions. Furthermore, long-term government subsidies will make platforms dependent on these subsidies. These are the contributions to the scientific literature.Originality/valueInstead of focusing on vertical relationships, this study emphasizes the horizontal cooperation and competition relationship between platforms and local governments in an urban agglomeration. Thus, the vertical effects of government subsidies on platforms can be investigated. Another innovation is the social welfare policy goal, which is an important index for the development of urban agglomerations.

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“…Third, some argue that there is a complex non-linear relationship between government subsidies and firm innovation. This non-linear relationship may be "U" or inverted "U" (25), or the threshold effect (26) is that more government subsidies are not better, but there is an optimal value (27), and subsidies will promote firm innovation when they reach the optimal value. Fourth, a few scholars argue that the effect of government subsidies on firm innovation is insignificant or ineffective (28, 29).…”

Section: Introductionmentioning

confidence: 99%

Impact of government subsidies on innovation of Chinese biopharmaceutical firms: Based on kink threshold model

Di²,

Liu³

2023

Front. Public Health

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Do government subsidies achieve the goals of stimulating firm innovation and macro-regulation? Existing studies have not reached a consistent conclusion. We will study the incentive effect of government subsidies on innovation of biopharmaceutical firms, analyze the optimal interval of government subsidies, and improve the efficiency of government subsidies. Thus, based on kink threshold model using data from Chinese biopharmaceutical listed companies from 2013–2019, this study analyzes the impact of government subsidies on innovation inputs and outputs. Government subsidies can stimulate innovation inputs and outputs of biopharmaceutical firms. Meanwhile, such subsidies have a significant threshold effect on innovation inputs and outputs, and there is an optimal interval effect. Additionally, concerning enterprise ownership, government subsidies have a more significant role in promoting innovation of non-state biopharmaceutical firms. Regarding regional differences, such subsidies have a more significant role in promoting innovation of firms in the less economically developed central and western regions. This study reveals the influence pattern of government subsidies, and provides insights and suggestions to formulate subsidy policies and enhance innovation.

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The importance of large firms for generating economic value from subsidized technological innovation: A regional perspective

Cited by 15 publications

References 63 publications

Government innovation subsidy, executives’ academic capital and innovation quality: Evidence from pharmaceutical companies in China

Government innovation subsidy, executives’ academic capital and innovation quality: Evidence from pharmaceutical companies in China

Two-level cooperation and competition strategies of government and technology service platforms: considering government subsidies

Impact of government subsidies on innovation of Chinese biopharmaceutical firms: Based on kink threshold model

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