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“SMEs’ Innovation Policy” on Innovation of Technology-based SMEs: A Fuzzy Regression Discontinuity Design

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  • Zhao, Kai
  • Wu, Wan-Shu
  • Ye, Jun-Mei

Abstract

We use the Fuzzy RD design toexplo re the influence of R&D subsidies and tax incentives in the “SMEsʼ Innovation Policy” on the innovation of technology-based SMEs. The results reveal that the “SMEsʼ Innovation Policy” can effectively stimulate the innovation of technology-based SMEs. Regardless of R&D subsidies or tax incentives means, the incentive effect of “SMEsʼ Innovation Policy” on strategic innovation is always stronger than substantial innovation. For the technology-based SMEs in the central-and-western region, the “SMEsʼ Innovation Policy” cannot significantly promote innovation, and may even inhibit it.

Suggested Citation

  • Zhao, Kai & Wu, Wan-Shu & Ye, Jun-Mei, 2021. "“SMEs’ Innovation Policy” on Innovation of Technology-based SMEs: A Fuzzy Regression Discontinuity Design," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 62(1), pages 1-32, June.
    • Handle: RePEc:hit:hitjec:v:62:y:2021:i:1:p:1-32
    DOI: 10.15057/hje.2021001
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    References listed on IDEAS

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    More about this item

    Keywords

    SMEsʼ innovation policy; technology-based SMEs; substantive innovation; strategic innovation; fuzzy RDD;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy

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