Beyond funding: The moderating role of firms' R&D human capital on government support and venture capital for regional innovation in China

Jude Edeh and Frédéric Prévot

Technological Forecasting and Social Change, 2024, vol. 203, issue C

Abstract: Technological innovation is a cornerstone of economic growth. It is a crucial determinant of regions' competitiveness, especially for rapidly developing emerging economies. Past research remained inconclusive on whether venture capital and government subsidies to firms have a significant effect on innovation performance at the regional level. In this article, we show the determining role of investment by firms in R&D human capital. We use panel data from 31 provinces in China, covering the period 1999–2015. The results reveal that government support for firms and venture capital do not have a significant direct impact on regional innovation performance. This effect is strongly moderated by R&D human capital. The findings of this study offer practical implications for policymakers and private investors, guiding them on how to maximize the efficiency of their R&D investments for regional economic growth. They also show the importance of investment in R&D human capital for the management of technology and innovation at the firm level.

Keywords: R&D human capital; Government support; Venture capital; R&D; Regional innovation; China; Emerging markets (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:203:y:2024:i:c:s0040162524001471

DOI: 10.1016/j.techfore.2024.123351

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