Abstract
R&D subsidized loans (tiexi daikuan) is an effective market-driven solution to promote firms’ R&D outputs, including patent applications and new product sales, in China. However, empirical examination on the effects of subsidized loans is insufficient. Using a panel data of manufacturing firms of Jiangsu Province from 2010 to 2014, the study investigates the effects of R&D subsidized loans on firms’ R&D outputs in comparison to that of the direct R&D grants. The results show that R&D subsidized loan recipients significantly outperform those who only receive direct grants in terms of new product sales. Meanwhile, subsidized loans inhibit the recipients’ exploratory patent applications and discourage R&D activities with higher risks. This study contributes to R&D subsidy literature and extends the knowledge in the roles of different types of public sponsorships on firms’ innovation.
Originalsprog | Engelsk |
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Tidsskrift | Journal of Business Economics and Management |
Vol/bind | 22 |
Udgave nummer | 6 |
Sider (fra-til) | 1655-1678 |
Antal sider | 24 |
ISSN | 1611-1699 |
DOI | |
Status | Udgivet - 15 okt. 2021 |