IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v188y2022icp945-956.html
   My bibliography  Save this article

The impact of industrial policy and its combinations on the innovation quality of wind power enterprises: A study from the perspective of financing modes

Author

Listed:
  • Wang, Xiaozhen
  • Liu, Shan
  • Tao, Ziyang
  • Cao, Qun

Abstract

The promotion of wind power is an important strategic measure to promote energy transformation and achieve carbon neutralization in China. Driven by a series of industrial policies, China's wind power industry is still faced with the dilemma of “large quantity yet poor quality”. Therefore, the paper considers as research object the wind power industry policies issued by the government of China between 2008 and 2019, and evaluates their impact on the innovation quality of enterprises from the perspective of financing modes. The results show that different categories of industry innovation policies and their combination have an important positive influence on enterprise innovation quality. There are differences in the regulatory effects of different financing modes on wind power industrial policy and enterprise innovation quality: internal financing inhibits the effect of industrial policy on enterprise innovation quality, while external financing promotes the impact of industrial policy on enterprise innovation quality. Further analysis shows that different categories of innovation policies and their combinations have impacts on the innovation quality of both private and state-owned enterprises, and in many regions. Finally, based on the research results, there are recommendations for policy managers and micro enterprises to stimulate the innovation quality of wind power plants.

Suggested Citation

  • Wang, Xiaozhen & Liu, Shan & Tao, Ziyang & Cao, Qun, 2022. "The impact of industrial policy and its combinations on the innovation quality of wind power enterprises: A study from the perspective of financing modes," Renewable Energy, Elsevier, vol. 188(C), pages 945-956.
    • Handle: RePEc:eee:renene:v:188:y:2022:i:c:p:945-956
    DOI: 10.1016/j.renene.2022.02.057
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148122001999
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2022.02.057?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Guariglia, Alessandra & Liu, Xiaoxuan & Song, Lina, 2011. "Internal finance and growth: Microeconometric evidence on Chinese firms," Journal of Development Economics, Elsevier, vol. 96(1), pages 79-94, September.
    2. Bruce A. Blonigen, 2016. "Industrial Policy and Downstream Export Performance," Economic Journal, Royal Economic Society, vol. 126(595), pages 1635-1659, September.
    3. Lin, Boqiang & Chen, Yufang, 2019. "Does electricity price matter for innovation in renewable energy technologies in China?," Energy Economics, Elsevier, vol. 78(C), pages 259-266.
    4. Weber, K. Matthias & Rohracher, Harald, 2012. "Legitimizing research, technology and innovation policies for transformative change," Research Policy, Elsevier, vol. 41(6), pages 1037-1047.
    5. Criscuolo, Chiara & Martin, Ralf & Overman, Henry & Van Reenen, John, 2012. "The Causal Effects of an Industrial Policy," IZA Discussion Papers 6323, Institute of Labor Economics (IZA).
    6. Rong, Zhao & Wu, Xiaokai & Boeing, Philipp, 2017. "The effect of institutional ownership on firm innovation: Evidence from Chinese listed firms," Research Policy, Elsevier, vol. 46(9), pages 1533-1551.
    7. Cull, Robert & Li, Wei & Sun, Bo & Xu, Lixin Colin, 2015. "Government connections and financial constraints: Evidence from a large representative sample of Chinese firms," Journal of Corporate Finance, Elsevier, vol. 32(C), pages 271-294.
    8. Song, Malin & Ai, Hongshan & Li, Xie, 2015. "Political connections, financing constraints, and the optimization of innovation efficiency among China's private enterprises," Technological Forecasting and Social Change, Elsevier, vol. 92(C), pages 290-299.
    9. Park, Jin, 2019. "Financial constraints and the cash flow sensitivities of external financing: Evidence from Korea," Research in International Business and Finance, Elsevier, vol. 49(C), pages 241-250.
    10. Reichardt, Kristin & Negro, Simona O. & Rogge, Karoline S. & Hekkert, Marko P., 2016. "Analyzing interdependencies between policy mixes and technological innovation systems: The case of offshore wind in Germany," Technological Forecasting and Social Change, Elsevier, vol. 106(C), pages 11-21.
    11. Hu, Albert G.Z. & Zhang, Peng & Zhao, Lijing, 2017. "China as number one? Evidence from China's most recent patenting surge," Journal of Development Economics, Elsevier, vol. 124(C), pages 107-119.
    12. Rogge, Karoline S. & Schleich, Joachim, 2018. "Do policy mix characteristics matter for low-carbon innovation? A survey-based exploration of renewable power generation technologies in Germany," Research Policy, Elsevier, vol. 47(9), pages 1639-1654.
    13. Chiara Criscuolo & Ralf Martin & Henry G. Overman & John Van Reenen, 2019. "Some Causal Effects of an Industrial Policy," American Economic Review, American Economic Association, vol. 109(1), pages 48-85, January.
    14. Wellalage, Nirosha Hewa & Fernandez, Viviana, 2019. "Innovation and SME finance: Evidence from developing countries," International Review of Financial Analysis, Elsevier, vol. 66(C).
    15. Schleich, Joachim & Walz, Rainer & Ragwitz, Mario, 2017. "Effects of policies on patenting in wind-power technologies," Energy Policy, Elsevier, vol. 108(C), pages 684-695.
    16. Pakes, Ariel & Griliches, Zvi, 1980. "Patents and R&D at the firm level: A first report," Economics Letters, Elsevier, vol. 5(4), pages 377-381.
    17. Fabrizi, Andrea & Guarini, Giulio & Meliciani, Valentina, 2018. "Green patents, regulatory policies and research network policies," Research Policy, Elsevier, vol. 47(6), pages 1018-1031.
    18. Brown, James R. & Martinsson, Gustav & Petersen, Bruce C., 2012. "Do financing constraints matter for R&D?," European Economic Review, Elsevier, vol. 56(8), pages 1512-1529.
    19. Grafström, Jonas & Lindman, Åsa, 2017. "Invention, innovation and diffusion in the European wind power sector," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 179-191.
    20. Guariglia, Alessandra & Liu, Pei, 2014. "To what extent do financing constraints affect Chinese firms' innovation activities?," International Review of Financial Analysis, Elsevier, vol. 36(C), pages 223-240.
    21. Lu, Jun & Wang, Wei, 2018. "Managerial conservatism, board independence and corporate innovation," Journal of Corporate Finance, Elsevier, vol. 48(C), pages 1-16.
    22. Zhao, Zhen-Yu & Chang, Rui-Dong & Chen, Yu-Long, 2016. "What hinder the further development of wind power in China?—A socio-technical barrier study," Energy Policy, Elsevier, vol. 88(C), pages 465-476.
    23. Plank, Josef & Doblinger, Claudia, 2018. "The firm-level innovation impact of public R&D funding: Evidence from the German renewable energy sector," Energy Policy, Elsevier, vol. 113(C), pages 430-438.
    24. Dang, Jianwei & Motohashi, Kazuyuki, 2015. "Patent statistics: A good indicator for innovation in China? Patent subsidy program impacts on patent quality," China Economic Review, Elsevier, vol. 35(C), pages 137-155.
    25. Gambardella, Alfonso, 2013. "The economic value of patented inventions: Thoughts and some open questions," International Journal of Industrial Organization, Elsevier, vol. 31(5), pages 626-633.
    26. Zhang, Shijie & Wei, Jing & Chen, Xi & Zhao, Yuhao, 2020. "China in global wind power development: Role, status and impact," Renewable and Sustainable Energy Reviews, Elsevier, vol. 127(C).
    27. Schmidt, Tobias S. & Sewerin, Sebastian, 2019. "Measuring the temporal dynamics of policy mixes – An empirical analysis of renewable energy policy mixes’ balance and design features in nine countries," Research Policy, Elsevier, vol. 48(10).
    28. Hu, Rui & Skea, Jim & Hannon, Matthew J., 2018. "Measuring the energy innovation process: An indicator framework and a case study of wind energy in China," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 227-244.
    29. Kim, Seokchin & Lee, Hyunchul & Kim, Joongi, 2016. "Divergent effects of external financing on technology innovation activity: Korean evidence," Technological Forecasting and Social Change, Elsevier, vol. 106(C), pages 22-30.
    30. Özçelik, Emre & Taymaz, Erol, 2008. "R&D support programs in developing countries: The Turkish experience," Research Policy, Elsevier, vol. 37(2), pages 258-275, March.
    31. Wang, Xiaozhen & Zou, Honghui, 2018. "Study on the effect of wind power industry policy types on the innovation performance of different ownership enterprises: Evidence from China," Energy Policy, Elsevier, vol. 122(C), pages 241-252.
    32. Todtling, Franz & Trippl, Michaela, 2005. "One size fits all?: Towards a differentiated regional innovation policy approach," Research Policy, Elsevier, vol. 34(8), pages 1203-1219, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yuegang Song & Songlin Jin & Zhenhui Li, 2022. "Venture Capital and Chinese Firms’ Technological Innovation Capability: Effective Evaluation and Mechanism Verification," Sustainability, MDPI, vol. 14(16), pages 1-20, August.
    2. Lin, Boqiang & Xie, Yongjing, 2023. "Positive or negative? R&D subsidies and green technology innovation: Evidence from China's renewable energy industry," Renewable Energy, Elsevier, vol. 213(C), pages 148-156.
    3. Zhong, Meirui & Lu, Qiaolin & He, Ruifang, 2022. "The heterogeneous effects of industrial policy on technological innovation: Evidence from China's new metal material industry and micro-data," Resources Policy, Elsevier, vol. 79(C).
    4. Wang, Yadong & Wang, Delu & Shi, Xunpeng, 2023. "Sustainable development pathways of China's wind power industry under uncertainties: Perspective from economic benefits and technical potential," Energy Policy, Elsevier, vol. 182(C).
    5. Liu, Jinpeng & Lin, Yingwen & Jiang, Mingyue & Guo, Xia, 2024. "Exploring policy support for wind power development from a balancing perspective - A study of dynamic strategies based on evolutionary game," Energy Policy, Elsevier, vol. 188(C).
    6. Jia, Junsheng & He, Xiaoyu & Zhu, Taiyu & Zhang, Eryu, 2023. "Does green finance reform promote corporate green innovation? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).
    7. Yan, Chen & Ji, Yaxing & Chen, Rui, 2023. "Research on the mechanism of selective industrial policies on enterprises' innovation performance ——Evidence from China's photovoltaic industry," Renewable Energy, Elsevier, vol. 215(C).
    8. Mo Du & Ruirui Zhang & Shanglei Chai & Qiang Li & Ruixuan Sun & Wenjun Chu, 2022. "Can Green Finance Policies Stimulate Technological Innovation and Financial Performance? Evidence from Chinese Listed Green Enterprises," Sustainability, MDPI, vol. 14(15), pages 1-28, July.
    9. Keren Chen, 2022. "Industrial Policy’s Effect on Cross-Border Mergers’ Decisions—Theoretical and Empirical Analysis," Sustainability, MDPI, vol. 14(20), pages 1-25, October.
    10. Zhang, Dan & Zheng, Mingbo & Feng, Gen-Fu & Chang, Chun-Ping, 2022. "Does an environmental policy bring to green innovation in renewable energy?," Renewable Energy, Elsevier, vol. 195(C), pages 1113-1124.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Xiaozhen & Zou, Honghui, 2018. "Study on the effect of wind power industry policy types on the innovation performance of different ownership enterprises: Evidence from China," Energy Policy, Elsevier, vol. 122(C), pages 241-252.
    2. Lin, Boqiang & Chen, Yufang, 2019. "Impacts of policies on innovation in wind power technologies in China," Applied Energy, Elsevier, vol. 247(C), pages 682-691.
    3. Sun, Xiuli & Li, Haizheng & Ghosal, Vivek, 2020. "Firm-level human capital and innovation: Evidence from China," China Economic Review, Elsevier, vol. 59(C).
    4. Che, Xiao-Jing & Zhou, P. & Chai, Kah-Hin, 2022. "Regional policy effect on photovoltaic (PV) technology innovation: Findings from 260 cities in China," Energy Policy, Elsevier, vol. 162(C).
    5. Lin, Boqiang & Chen, Yufang, 2019. "Does electricity price matter for innovation in renewable energy technologies in China?," Energy Economics, Elsevier, vol. 78(C), pages 259-266.
    6. Muhammad Kaleem Khan & Ahmad Kaleem & Salman Zulfiqar & Umair Akram, 2019. "Innovation Investment: Behaviour Of Chinese Firms Towards Financing Sources," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(07), pages 1-29, October.
    7. He, Zhengxia & Cao, Changshuai & Kuai, Leyi & Zhou, Yanqing & Wang, Jianming, 2022. "Impact of policies on wind power innovation at different income levels: Regional differences in China based on dynamic panel estimation," Technology in Society, Elsevier, vol. 71(C).
    8. Taiming Chen & Xi Chen, 2023. "The Role of Digital Transformation in the Relationship between Industrial Policies and Technological Innovation Performance: Evidence from the Listed Wind Power Enterprises in China," Sustainability, MDPI, vol. 15(7), pages 1-19, March.
    9. Xin-gang, Zhao & Wei, Wang & Jieying, Wang, 2022. "The policy effects of demand-pull and technology-push on the diffusion of wind power: A scenario analysis based on system dynamics approach," Energy, Elsevier, vol. 261(PA).
    10. Liu, Shasha & Ji, Mianmian & Wang, Huijuan, 2021. "Decentralization and firm innovation: Evidence from a natural experiment in China," Economic Modelling, Elsevier, vol. 94(C), pages 501-512.
    11. Cheng, Yuanyuan & Yao, Xin, 2021. "Carbon intensity reduction assessment of renewable energy technology innovation in China: A panel data model with cross-section dependence and slope heterogeneity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    12. Kern, Florian & Rogge, Karoline S. & Howlett, Michael, 2019. "Policy mixes for sustainability transitions: New approaches and insights through bridging innovation and policy studies," Research Policy, Elsevier, vol. 48(10).
    13. Luo, Lianfa & Cheng, Zhiming & Ye, Qingqing & Cheng, Yanjun & Smyth, Russell & Yang, Zhiqing & Zhang, Le, 2024. "Nonmonetary awards and innovation: Evidence from winning China's Top Brand Contest," China Economic Review, Elsevier, vol. 86(C).
    14. Grafström, Jonas & Poudineh, Rahmat, 2023. "No evidence of counteracting policy effects on European solar power invention and diffusion," Energy Policy, Elsevier, vol. 172(C).
    15. Trotter, Philipp A. & Brophy, Aoife, 2022. "Policy mixes for business model innovation: The case of off-grid energy for sustainable development in sub-Saharan Africa," Research Policy, Elsevier, vol. 51(6).
    16. Yano, Go & Shiraishi, Maho, 2020. "Finance, institutions, and innovation activities in China," Economic Systems, Elsevier, vol. 44(4).
    17. Patrik Gustavsson Tingvall & Josefin Videnord, 2020. "Regional differences in effects of publicly sponsored R&D grants on SME performance," Small Business Economics, Springer, vol. 54(4), pages 951-969, April.
    18. Yi, Jiahui & Dai, Sheng & Li, Lin & Cheng, Jinhua, 2024. "How does digital economy development affect renewable energy innovation?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).
    19. Ma, Yechi & Sha, Yezhou & Wang, Zilong & Zhang, Wenjing, 2023. "The effect of the policy mix of green credit and government subsidy on environmental innovation," Energy Economics, Elsevier, vol. 118(C).
    20. Yanyang Yan & Juan Wang & Sijia Qiao, 2022. "Effects of Industrial Policy on Firms’ Innovation Outputs: Evidence From China," SAGE Open, , vol. 12(3), pages 21582440221, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:188:y:2022:i:c:p:945-956. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.