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Effects of National Science and Technology Programs on Innovation in Chinese Firms*

Xing Shi (), Yanrui Wu, Dahai Fu (), Xiumei Guo () and Huaqing Wu ()
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Xing Shi: School of Economics Hefei University of Technology 193 Tungxi Road Hefei, China 230009
Dahai Fu: School of International Trade and Economics Central University of Finance and Economics 39 Xueyuan Road South, Haidiang District Beijing, China 100081
Xiumei Guo: Curtin University Sustainability Policy Institute and School of Marketing Curtin University Kent Street, Bentley Perth 6102, Australia
Huaqing Wu: School of Economics Hefei University of Technology 193 Tungxi Road Hefei, China 230009

Asian Economic Papers, 2019, vol. 18, issue 1, 207-236

Abstract: This paper aims to evaluate whether national science and technology programs in China help boost private investment in research and development and improve firms’ productive efficiency and innovation performance. The empirical analysis is based on a survey of 443 innovative firms in China during the period of 2008–11. A matching estimator together with a difference-in-difference approach is employed to investigate the effect of undertaking national science and technology programs. The results show that the effectiveness of national science and technology programs may be over-estimated. There are also heterogeneous effects across firms of different sizes and ownership and with different programs.

Date: 2019
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