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Keywords

large enterprises, research investment, breakthrough innovation, policy support, POT model

Abstract

Large-scale enterprises are the dominant force to achieve China's independent innovation,which play an important role in participating in international competition to extend China's industrial chain, increase internal circulation and drive the development of small and medium-sized enterprises in the upstream and downstream of the domestic supply chain. The paper measures the index of breakthrough and incremental innovation of enterprises using POT model. Descriptive statistics show that China's breakthrough innovation is mainly led by the top 25% of large enterprises, but research intensity of large enterprises is lower than that of the bottom 75% companies. The empirical results showed that: Only research (basic research and applied research) investment intensity has a significant positive impact on the breakthrough innovation of the top 25% of large enterprises, while the impact on the bottom 75% is not significant, indicating that there are differences in the innovation mission of companies of different sizes. The direct effect of government R&D subsidies and tax incentives on breakthrough innovation is not obvious which shows the endogeneity of breakthrough innovation. Government R&D subsidy will promote the top 25% of large companies to increase the scale of research investment, thereby positively stimulate incremental innovation;for the bottom 75% of enterprises, R&D subsidies and tax incentives are beneficial to increase research investment,but restricted by research capabilities, they can only significantly boost incremental innovation. Under the support of policies,large enterprises’ R&D have not begun to transform from the development stage to the basic and applied research stage, which is the fundamental reason that limits enterprises' breakthrough innovation.

DOI

10.16315/j.stm.2023.02.009

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