Can government R&D subsidy stimulate enterprise R&D input? -Dual-perspective heterogeneity analysis based on enterprise size and ownership

Abstract

By constructing the theoretical model of the effect of government R&D subsidy on enterprise R&D input, using the dynamic panel method and the data of Chinese 31 provincial regions during 2009- 2015, this article studies if government R&D subsidy can stimulate enterprise R&D input according to the size and the ownership of enterprises. It is found that government R&D subsidy has significantly stimulated medium-sized enterprise, non-state-owned enterprise and foreign-capital enterprise input and inhibited large-sized enterprise and state-owned enterprise input. By analyzing the effect of high, medium and low subsidy rates, it is found that state-owned enterprises have serious over-subsidy problems, while non-state-owned enterprises have relatively insufficient R&D subsidy, and some foreign-funded enterprises also have over-subsidy problems.