Government R&D spending,fiscal instruments and corporate technological innovation |
| |
Affiliation: | 1. School of Accounting, China Internal Control Research Center, Dongbei University of Finance and Economics, China;2. School of Accounting, Dongbei University of Finance and Economics, China |
| |
Abstract: | Using panel data from 242 cities in China, we examine the impact of government research and development (R&D) spending on corporate technological innovation. We find that listed firms located in cities with higher government R&D expenditures are more innovative than firms in other cities. Further, the positive effect of government R&D spending depends on fiscal instruments and factor allocation. Through subsidies and tax incentives, government R&D spending enhances firm innovation by alleviating financing constraints, improving employee creativity and ensuring efficient operations. We demonstrate that subsidies are more effective than taxes in spurring corporate technological innovation. We also show that the impact of government R&D spending is stronger for state-owned and high-tech enterprises than for other enterprises. Overall, our findings suggest that government R&D spending can substantially improve corporate technological innovation through fiscal instruments. |
| |
Keywords: | Government R&D Spending Technological Innovation Fiscal Instruments Factor Allocation E62 O31 O38 |
本文献已被 ScienceDirect 等数据库收录! |
|