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R&D Subsidies and Technological Progress in the Chinese ICT Manufacturing Industry

Junjun Li

31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes from International Telecommunications Society (ITS)

Abstract: In the past decades, the Chinese ICT industry has received fiscal, taxation, and financial policy support in technology R&D. This research adopts causal inference methods for mediation analysis with interaction to empirically examine the direct and indirect effects of R&D subsidies in the Chinese ICT manufacturing industry. We found that the impact of R&D subsidies on private R&D expenditure and innovation outputs is positive and statistically significant. However, higher subsidy intensity crowds out private R&D expenditures. Second, in the Eastern region, firms invest more in R&D but more in incremental rather than radical innovation. And, the enterprise average private R&D expenditure is insufficient in the ECE sector. Finally, openness and information levels positively contribute to innovation outputs. Based on the findings, we propose several policy suggestions.

Keywords: R&D subsidies; innovation output; private R&D investment; Chinese ICT manufacturing; causal mediation analysis (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-cna, nep-cse, nep-ict, nep-ino, nep-sbm and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:itse22:265652

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