The impact of public policy on enterprise innovation performance: Panel data on financial subsidy policy
This study examined the impact of government subsidies on enterprise innovation performance in China. The fixed effects model was used for empirical analysis, utilizing panel data from 17,670 observations of 3703 listed A-share companies between 2012 and 2022, and the findings indicate that governme...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-01-01
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| Series: | Heliyon |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844024172611 |
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| _version_ | 1841526209381400576 |
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| author | Ge Ban Thitinan Chankoson Yun Wang |
| author_facet | Ge Ban Thitinan Chankoson Yun Wang |
| author_sort | Ge Ban |
| collection | DOAJ |
| description | This study examined the impact of government subsidies on enterprise innovation performance in China. The fixed effects model was used for empirical analysis, utilizing panel data from 17,670 observations of 3703 listed A-share companies between 2012 and 2022, and the findings indicate that government subsidies significantly enhance enterprise innovation performance, with R&D investment serving as a partial mediator. The enterprise scale, ownership nature, and regional economic differences influenced the effectiveness of the subsidy. Larger enterprises benefit more than SMEs; non-state-owned enterprises show stronger innovation incentives and the incentive effects are more pronounced in the central and western regions than in the eastern regions. This study recommends increasing government subsidies, particularly for SMEs in the central and western regions, by optimizing subsidy methods, enhancing targeting, and refining subsidy evaluation mechanisms. Therefore, enterprise managers should focus on strategic planning and continuous innovation to drive sustainable economic development. This study contributes to the theoretical understanding of subsidy policy impacts and offers practical policy insights for enhancing innovation performance in enterprises. |
| format | Article |
| id | doaj-art-8c69a0f72e0c4130841dc462c0f3e6da |
| institution | Kabale University |
| issn | 2405-8440 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj-art-8c69a0f72e0c4130841dc462c0f3e6da2025-01-17T04:50:35ZengElsevierHeliyon2405-84402025-01-01111e41230The impact of public policy on enterprise innovation performance: Panel data on financial subsidy policyGe Ban0Thitinan Chankoson1Yun Wang2Law School, Guangdong Peizheng College, Guangzhou, Guangdong, 510830, ChinaFaculty of Business Administration for Society, Srinakharinwirot University, Bangkok, 10110, Thailand; Corresponding author.College of Management, Guangzhou City University of Technology, Guangzhou, Guangdong,510800, ChinaThis study examined the impact of government subsidies on enterprise innovation performance in China. The fixed effects model was used for empirical analysis, utilizing panel data from 17,670 observations of 3703 listed A-share companies between 2012 and 2022, and the findings indicate that government subsidies significantly enhance enterprise innovation performance, with R&D investment serving as a partial mediator. The enterprise scale, ownership nature, and regional economic differences influenced the effectiveness of the subsidy. Larger enterprises benefit more than SMEs; non-state-owned enterprises show stronger innovation incentives and the incentive effects are more pronounced in the central and western regions than in the eastern regions. This study recommends increasing government subsidies, particularly for SMEs in the central and western regions, by optimizing subsidy methods, enhancing targeting, and refining subsidy evaluation mechanisms. Therefore, enterprise managers should focus on strategic planning and continuous innovation to drive sustainable economic development. This study contributes to the theoretical understanding of subsidy policy impacts and offers practical policy insights for enhancing innovation performance in enterprises.http://www.sciencedirect.com/science/article/pii/S2405844024172611Sustainable developmentGovernment subsidyR&D investmentPolicyHeterogeneityInnovation performance |
| spellingShingle | Ge Ban Thitinan Chankoson Yun Wang The impact of public policy on enterprise innovation performance: Panel data on financial subsidy policy Heliyon Sustainable development Government subsidy R&D investment Policy Heterogeneity Innovation performance |
| title | The impact of public policy on enterprise innovation performance: Panel data on financial subsidy policy |
| title_full | The impact of public policy on enterprise innovation performance: Panel data on financial subsidy policy |
| title_fullStr | The impact of public policy on enterprise innovation performance: Panel data on financial subsidy policy |
| title_full_unstemmed | The impact of public policy on enterprise innovation performance: Panel data on financial subsidy policy |
| title_short | The impact of public policy on enterprise innovation performance: Panel data on financial subsidy policy |
| title_sort | impact of public policy on enterprise innovation performance panel data on financial subsidy policy |
| topic | Sustainable development Government subsidy R&D investment Policy Heterogeneity Innovation performance |
| url | http://www.sciencedirect.com/science/article/pii/S2405844024172611 |
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