Governance and effects of public R&D subsidies: evidence from China

Guo, Di, Guo, Yan and Jiang, Kun (2018) Governance and effects of public R&D subsidies: evidence from China. Technovation, 74-75 . pp. 18-31. ISSN 0166-4972

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This study examines the effects of public research and development (R&D) subsidies and the governance of such subsidies on firm productivity based on the analysis of a firm-level panel dataset between 1998 and 2007 in China. It is found that public R&D subsidies tend to support more productive firms and the productivity of these government-backed firms is improved further after they get the government support. Less attention is paid to the observable or measurable performance measurements in ex-ante project selection, and the ex-post effects are stronger when the governance of the public R&D subsidies becomes more decentralized due to an exogenous policy change. In other words, better decentralization of governance is associated with more pronounced effects of R&D subsidies. Identification concerns are addressed with various approaches to confirm the treatment effect of public R&D subsidies and the governance of such subsidies.

Item Type: Article
Keywords: public R&D subsidies, productivity, governance, decentralization, China
Schools/Departments: University of Nottingham, UK > Faculty of Social Sciences > Nottingham University Business School
Identification Number:
Depositing User: Jiang, Kun
Date Deposited: 16 Apr 2018 10:58
Last Modified: 04 May 2020 19:43

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