Relationships among Government Funding, R&D Model and Innovation Performance: A Study on the Chinese Textile Industry

Zhiying Zhang, Hua Cheng and Yabin Yu
Additional contact information
Zhiying Zhang: School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou 310018, China
Hua Cheng: School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou 310018, China
Yabin Yu: School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou 310018, China

Sustainability, 2020, vol. 12, issue 2, 1-20

Abstract: The textile industry is a traditional pillar industry of the national economy in China. The strategic goal of Chinese innovation is to upgrade and transform traditional industries and make them develop in coordination with high-tech industries, so as to realize sustainable industrial development. At the core of industrial sustainable development, the innovation of the textile industry in China has become an important issue worthy of attention. Based on resource-based theory and signal transfer theory, the relationship between government funding, R&D models and the innovation performance of the Chinese textile industry is studied. The results show that government funding has a significant, direct promoting effect on the internal R&D and science-based cooperation of enterprises. Government funding indirectly promotes market-based cooperation through internal R&D. The promoting effect of internal R&D on innovation performance is greater than that of cooperative R&D. Internal R&D and cooperative R&D have more promoting effects on R&D reserve performance than those on market performance. Government funding indirectly promotes innovation performance through the mediation of internal R&D and science-based cooperation. The threshold effect of cooperative R&D indicates that only when the cooperative R&D intensity exceeds the threshold can government funding foster innovation performance more effectively. The conclusions can provide theoretical guidance for the formulation of innovation policy.

Keywords: government funding; R&D model; textile industry; innovation performance (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/2/644/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/2/644/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:2:p:644-:d:309176

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().