TITLE:
The Impact of Public R & D Subsidies on Private R & D Expenditure and Its Innovation Performance—An Empirical Study Based on Industrial Enterprises in Guangdong Province
AUTHORS:
Jingwen Xia, Yi Zhu
KEYWORDS:
Public R & D Subsidies, Industrial Enterprises, Private R & D Expenditure, Innovation Performance
JOURNAL NAME:
Modern Economy,
Vol.10 No.1,
January
22,
2019
ABSTRACT: Based on the panel data of Guangdong industrial
enterprises from 2006 to 2013, this paper empirically studies the impact of
public R & D subsidies on private R & D expenditure and the impact of
the two on the innovation performance of enterprises by using random effects
model and fixed effects model. The results show that public R & D subsidies
can promote enterprises to carry out private R & D expenditure, and there
is an obvious time lag. Using grouping studies, we found that low-level public
R & D subsidies can encourage
enterprises to increase their private R & D expenditure, but high-level public
subsidies will crowd out part of private R & D expenditure. Finally, this
paper divides the innovation performance of enterprises into the stage of
knowledge output and the stage of marketization. In the knowledge output stage,
public R & D subsidies and R & D staff input can significantly improve
the innovation performance of enterprises; in the marketization stage, public R
& D subsidies cannot promote the increase of new product income, while the
private R & D expenditure of enterprises can significantly increase the
income of new products.