Do Government Subsidies Stimulate Enterprises' Innovation?
|Source||Studies in Science of Science , v. 34, (3), 2016, p. 433-442|
|Summary||Government R&D subsidies on enterprises’ private R&D expenditure. R&D subsidies have stimulation effects and crowding-out effects, but there is no consistent answer. The research has utilized micro data of listed companies in China from 2010 to 2012 and applied PSM (Propensity Score Matching) method to analyze the effects of R&D subsidies. The results show that R&D subsidies in China are distributed to enterprises with higher autonomy in management, shorter listed age, and larger scale of employees and domestic property right and having R&D activities. The research discovered that R&D subsidies have significantly stimulated enterprises’ R&D expenditures in China. The recipients of subsides invest additional 21.43 million RMB on average than non-recipients.|