Government R&D subsidies and the manipulative innovation strategy of Chinese renewable energy firms

Qianwei Ying, Shanye Yang and Siyi He

Economic Research-Ekonomska Istraživanja, 2023, vol. 36, issue 2, 2142823

Abstract: Renewable energy technology innovation is the key to alleviating environmental issues. The Chinese government promotes corporate innovation in the renewable energy industry by providing R&D subsidies. This paper investigates the impact of R&D subsidies on innovation strategies in Chinese renewable energy listed firms from 2008 to 2017. The results show that R&D subsidies induce firms to adopt a manipulative innovation strategy that increases innovation quantity but reduces innovation quality, especially in regions with low marketization or unfair competition. We further find that the choice of manipulative innovation strategy is caused by the flawed subsidy distribution system and examination procedures of subsidy use. This paper deepens the understanding of the relationship between government subsidies and corporate innovation strategy and provides new enlightenments for emerging economies to enhance the effectiveness of subsidy policies.

Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/1331677X.2022.2142823 (text/html)
Access to full text is restricted to subscribers.

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:taf:reroxx:v:36:y:2023:i:2:p:2142823

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rero20

DOI: 10.1080/1331677X.2022.2142823

Access Statistics for this article

Economic Research-Ekonomska Istraživanja is currently edited by Marinko Skare

More articles in Economic Research-Ekonomska Istraživanja from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().