•  
  •  
 

Keywords

government subsidies, substantive innovation, firm life cycle

Abstract

At the critical moment of building an innovation power, how the Chinese government adjusts and optimizes the subsidy policy to further exert the incentive effect on the substantive innovation of enterprises becomes a major question that needs to be answered urgently. Based on a research sample of high-tech enterprises listed on A shares in China from 2014 to 2020 and combined with the dynamic life cycle characteristics of enterprises, the impact of government subsidies on substantive innovation of enterprises is studied in depth. The study shows that: first, government subsidies significantly promote firms' substantive innovation; second, R&D investment plays a partly mediating role in the relationship between government subsidies and firms' substantive innovation; third, the positive incentive effect of government subsidies on firms' substantive innovation is mainly concentrated in the maturity period, and the promotion effect on firms in the growth period and the decline period is relatively small.

DOI

10.16315/j.stm.2022.01.003

Download

Share

COinS