The impact of “Mass Entrepreneurship and Innovation” policy on SMEs’ innovation: Using quasi-natural experiments |
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Authors: | Kai Zhao Wanshu Wu Junmei Ye |
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Institution: | 1. School of Economics, Qingdao University, Qingdao, China;2. College of Architecture and Urban Planning, Qingdao University of Technology, Qingdao, China;3. School of Statistics, Huaqiao University, Xiamen, China |
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Abstract: | This study presents an in-depth investigation of the impact of “Mass Entrepreneurship and Innovation” (MEI) policy on small and medium-sized enterprises’ (SMEs’) innovation using the propensity score matching–difference-in-difference method. The MEI policy's R&D subsidies are found to generate a positive effect on SMEs’ innovation. Although R&D subsidies have no significant impact on SMEs’ strategic innovation, they can promote substantial innovation and establish a solid microfoundation for China's high-quality development. Compared with R&D subsidies, tax incentives in the MEI policy cannot encourage SMEs to innovate and may even have a negative impact on SMEs’ innovation. |
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Keywords: | Mass Entrepreneurship and Innovation PSM-DID R&D subsidy SME tax incentive |
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