%0 Journal Article
%T Research on Effectiveness of the Government R&D Subsidies: Evidence from Large and Medium Enterprises in China
%A Xindong Zhang
%A Junjun Wu
%J American Journal of Industrial and Business Management
%P 503-513
%@ 2164-5175
%D 2014
%I Scientific Research Publishing
%R 10.4236/ajibm.2014.49056
%X To cope with
the fast-changing business environment, Chinese government makes every effort
to increase business R&D subsidies. The aim of this paper is to examine the
efficiency of Chinese government R&D subsidies on innovative performance
and the moderating role of a firm¡¯s R&D capacity. Based on the data from
Chinese Large and Medium Firms during 1997-2012, we analyze whether government R&D
subsidies affect a firm¡¯s innovative performance, as well as how this effect
works. The findings suggest that the firms that received increasing government
R&D subsidies will have a better innovative performance, yet up to a point.
Beyond this threshold, a greater share of government R&D subsidy will reduce
a firm¡¯s innovative performance. And such substitution effect is larger for
firms with greater R&D capacity. Also, the firm¡¯s own R&D capacity,
size, industry technical levels have varying degrees of impact on the
efficiency of government R&D subsidies. The findings of this paper may have
practical value and help governments to develop relative regulations and
policies.
%K China
%K Government R&amp
%K D Subsidies
%K R&amp
%K D Capacity
%K Innovative Performance
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=49770