File Download
Supplementary

Conference Paper: Government subsidized R&D, project screening, and firms’ innovation: evidence from China

TitleGovernment subsidized R&D, project screening, and firms’ innovation: evidence from China
Authors
KeywordsGovernment R&D Program
Innovation
Project screening system
Institutions
Issue Date2014
Citation
The 24th Annual Meeting of the American Law and Economics Association (ALEA 2014), Chicago, IL., 8-9 May 2014. How to Cite?
AbstractThe effects of government subsidies to corporate R&D on firms’ innovation outputs still remain inconclusive in existing studies. Moreover, little is known how the screening system of the public R&D programs influences the effect of such programs. This study examines the effects of Innofund (one of the largest Chinese government programs supporting corporate R&D activities) on firms’ innovation outputs in China. In particular, the project screening mechanism was changed due to policy amendments in 2005. This exogenous policy shock allows us to estimate how the project screening system affects the influence of public R&D subsidies. Based on a panel dataset of Chinese manufacturing firms, we find Innofund-backed firms outperform their non-Innofund-backed counterparts in innovation, measured by the number of patents, new product sales, and the volume of exports after they gained funding. The magnification effects of Innofund are larger after 2005, when the project-screening scheme became more decentralized indicating that decentralized screening functions better in public R&D investment. Finally, the effects of Innofund and the effects of the decentralized screening system that occurred in 2005 vary substantially across markets. The more economically and institutionally developed the market is, the stronger the Innofund effects and the project selection decentralization effects appear. The identification problems are handled by using the propensity score matching approach and the instrumental variable approach.
Persistent Identifierhttp://hdl.handle.net/10722/198649

 

DC FieldValueLanguage
dc.contributor.authorGuo, Den_US
dc.contributor.authorGuo, Yen_US
dc.contributor.authorJiang, Ken_US
dc.date.accessioned2014-07-07T08:32:48Z-
dc.date.available2014-07-07T08:32:48Z-
dc.date.issued2014en_US
dc.identifier.citationThe 24th Annual Meeting of the American Law and Economics Association (ALEA 2014), Chicago, IL., 8-9 May 2014.en_US
dc.identifier.urihttp://hdl.handle.net/10722/198649-
dc.description.abstractThe effects of government subsidies to corporate R&D on firms’ innovation outputs still remain inconclusive in existing studies. Moreover, little is known how the screening system of the public R&D programs influences the effect of such programs. This study examines the effects of Innofund (one of the largest Chinese government programs supporting corporate R&D activities) on firms’ innovation outputs in China. In particular, the project screening mechanism was changed due to policy amendments in 2005. This exogenous policy shock allows us to estimate how the project screening system affects the influence of public R&D subsidies. Based on a panel dataset of Chinese manufacturing firms, we find Innofund-backed firms outperform their non-Innofund-backed counterparts in innovation, measured by the number of patents, new product sales, and the volume of exports after they gained funding. The magnification effects of Innofund are larger after 2005, when the project-screening scheme became more decentralized indicating that decentralized screening functions better in public R&D investment. Finally, the effects of Innofund and the effects of the decentralized screening system that occurred in 2005 vary substantially across markets. The more economically and institutionally developed the market is, the stronger the Innofund effects and the project selection decentralization effects appear. The identification problems are handled by using the propensity score matching approach and the instrumental variable approach.en_US
dc.languageengen_US
dc.relation.ispartof24th American Law and Economics Association Annual Meeting, ALEA 2014en_US
dc.rightsCreative Commons: Attribution 3.0 Hong Kong License-
dc.subjectGovernment R&D Program-
dc.subjectInnovation-
dc.subjectProject screening system-
dc.subjectInstitutions-
dc.titleGovernment subsidized R&D, project screening, and firms’ innovation: evidence from Chinaen_US
dc.typeConference_Paperen_US
dc.identifier.emailGuo, D: diguo@hku.hken_US
dc.identifier.emailJiang, K: jiangkun@hku.hken_US
dc.identifier.authorityGuo, D=rp01065en_US
dc.identifier.authorityJiang, K=rp01520en_US
dc.description.naturepostprint-
dc.identifier.hkuros230044en_US

Export via OAI-PMH Interface in XML Formats


OR


Export to Other Non-XML Formats