 R%D subsidies and R%D expenditure in China: do financing constraints play intervening roles?Caijiang Zhang and Lu Chen International Journal of Technological Learning, Innovation and Development, 2019, vol. 11, issue 2, 155-184 Abstract: In response to the state of R%D and financing in China, we conducted an empirical study using unbalanced panel data of Chinese listed growth enterprises market (GEM) companies from 2010 to 2017, in order to investigate how R%D subsidies affect R%D expenditure. We find that R%D subsidies can crowd in R%D expenditure, and that financing constraints play intervening roles in the relationship between R%D subsidies and R%D expenditure. The study further implies that R%D subsidies can better ease financing constraints and better crowd in R%D expenditure of enterprises located in innovative cities. We also find that, in China, there is room for enhancing the easing effect of R%D subsidies on financing constraints. In line with our estimation results, we suggest that the Chinese Government provide more R%D subsidies, adjust its R%D subsidy strategy, develop science and technology banks, improve the country's capital market, and enact more preferential policies for R%D. Keywords: R%D subsidies; R%D expenditure; intervening effect; financing constraints; Chinese listed GEM companies. (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:ids:ijtlid:v:11:y:2019:i:2:p:155-184 Access Statistics for this article More articles in International Journal of Technological Learning, Innovation and Development from Inderscience Enterprises Ltd |
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