Contemporary Finance & Economics ›› 2022, Vol. 0 ›› Issue (10): 40-51.

• Public Economics & Administration • Previous Articles     Next Articles

The Asymmetric Impact ofHeterogeneous Government Subsidies on Enterprise R&D Input and R&D Output

YAO Lin-xiang1, PENG Rui-juan1,2, XU Jian-bin1   

  1. 1. Jiangxi University of Finance and Economics, Nanchang 330013;
    2. College of Modern Economics & Management JUFE, Jiujiang 332020, China
  • Received:2022-01-16 Online:2022-10-15 Published:2022-10-18

Abstract: Improving the innovation capability of enterprises is an important part of the in-depth implementation of the innovation driven development strategy, and government subsidies are an important means to stimulate innovation and development. Therefore, under the background of insisting on the innovation driven development, it is of greater realistic significance to explore the innovation performance of enterprises from the perspective of the heterogeneity of government subsidies. Based on the unbalanced panel data of Chinese manufacturing enterprises from 2012 to 2020, this paper empirically analyzes the asymmetric impact and the action mechanism of heterogeneous government subsidies on enterprise R&D input and R&D output. The results show that both innovation subsidy and non-innovation subsidy can significantly promote the R&D investment of enterprises, but the effect of innovation subsidy is significantly greater than that of non-innovation subsidy. The innovation subsidies have a significant positive impact on enterprise R&D output, but the impact of non-innovation subsidies on enterprise R&D output is not significant. The results of the mechanism analysis show that innovation subsidies can not only reduce the innovation cost of enterprisesdirectly, but also significantly affect their acquisition of venture capital, thus promoting enterprise innovation. Therefore, in order to give full play to the positive role of government subsidies in enhancing the enterprises' innovation capabilities, it is necessary to optimize the structure of government subsidies and gradually increase the scale and intensity of innovation subsidies; to improve the selection and evaluation mechanism for government subsidy projects and improve the efficiency of innovative subsidies continuously; and to build a public platform for innovation subsidies and give full play to the signaling effect of innovation subsidies.

Key words: heterogeneous government subsidies, R&D input, R&D output, manufacturing enterprises, asymmetric effect

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