 Do government subsidies improve innovation investment for new energy firms: A quasi-natural experiment of China's listed companiesZhanchi Wu, Xiangjun Fan, Bangzhu Zhu, Jiahui Xia, Lin Zhang and Ping Wang Technological Forecasting and Social Change, 2022, vol. 175, issue C Abstract: This paper applies the fixed effects and the difference-in-differences models to explore the impact of government subsidies on the innovation investment of new energy firms by the financial information of China's listed companies from 2007 to 2017. The empirical results demonstrate that the subsidy scale of new energy enterprises has an inverted U-shaped relationship with enterprise innovation investment. The higher subsidy level has a crowding out effect on the research and development (R&D) investment of enterprises, which is largely attributable to the managerial myopia of enterprises. We further confirm the existence of the crowding out effect by exploring the quasi-natural experiment of China's new energy vehicle subsidy adjustment policy in 2016. We find that reducing subsidies is associated with a significant increase in R&D investment. This study reveals the optimal choice of government intervention. Keywords: New energy; Subsidy; Innovation investment; Managerial myopia; Equity pledge (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:175:y:2022:i:c:s0040162521008490 DOI: 10.1016/j.techfore.2021.121418 Access Statistics for this article Technological Forecasting and Social Change is currently edited by Fred Phillips More articles in Technological Forecasting and Social Change from Elsevier |
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