TITLE:
Financial Subsidy, Corporate Lifecycle and R&D Innovation
AUTHORS:
Ke Yang
KEYWORDS:
Financial Subsidies, R&D, Innovation, Lifecycle
JOURNAL NAME:
Modern Economy,
Vol.11 No.3,
March
23,
2020
ABSTRACT: There is great uncertainty in the effect of financial subsidy on
enterprise innovation, which is reflected in the difference in the effects
during different lifecycle stages. Based on the theory of financial subsidy’s
influence on enterprise innovation and the theory of enterprise lifecycle, this
paper demonstrates the different effects of financial subsidy on R&D
innovation when enterprises are in different lifecycle stages. Moreover, using
the data of listed companies in the A-share market of China from 2013 to 2017,
the paper finds that there are significant differences in the impact of
financial subsidy on enterprise innovation through the fixed effect model and
hierarchical multiple regression. Therefore, financial subsidy for enterprise
innovation is important and should be differentiated to different life cycle
enterprises.