Government support, innovation and productivity in the Haidian (Beijing) District

Can Huang, Wu Y., Pierre Mohnen and Zhao Y.
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Zhao Y.: UNU-MERIT

No 2013-058, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: This paper examines whether the government support in favour of firms located in the Haidian district of Beijing, which includes the Zhongguancun Science Park, was effective in terms of innovation and economic performance. We use a dataset of 500 manufacturing firms that results from a merger of the 2007 nation-wide innovation survey and the Annual Survey of Industrial Enterprises databases fromthe National Bureau of Statistics. We find that among all firms state- or collectively-owned, nonstate- or collectively-owned and Hong Kong, Macau, Taiwan or other foreign-funded firms that received direct government support for innovative activities only the non-state- or collectively-owned domestic firms invested more in innovation than the firms that did not receive such support. However, despite higher government support, domestic firms have lower labour productivity than foreign-funded firms, including those funded from Hong Kong, Macau, or Taiwan.

Keywords: Technological Change; Government Policy (search for similar items in EconPapers)
JEL-codes: O38 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ino and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2013058

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