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Does Industrial Policy Play an Important Role in Enterprise Innovation?

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  • Feipeng Feng

Abstract

Using a the sample of A-share listed companies in Shanghai and Shenzhen during the twelfth five-year Plan period (2011–2015), this paper studies the impact of industrial policy and labor allocation on the innovation efficiency of enterprises to test the correlation among government policy, labor allocation and innovation efficiency. The empirical results show that industrial policy significantly improves the innovation efficiency of enterprises; at enterprises with low labor allocation, the innovation efficiency of enterprises is higher with an industrial policy. This study provides a new perspective and empirical evidence that government decision-makers can use in dealing with the relationship between government policies, labor market factors and enterprise innovation.

Suggested Citation

  • Feipeng Feng, 2019. "Does Industrial Policy Play an Important Role in Enterprise Innovation?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 55(15), pages 3490-3512, December.
    • Handle: RePEc:mes:emfitr:v:55:y:2019:i:15:p:3490-3512
    DOI: 10.1080/1540496X.2019.1649654
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    Cited by:

    1. Wen, Huwei & Lee, Chien-Chiang & Zhou, Fengxiu, 2022. "How does fiscal policy uncertainty affect corporate innovation investment? Evidence from China's new energy industry," Energy Economics, Elsevier, vol. 105(C).
    2. Chengde You & Huishan Qiu & Zhuojie Pi & Mengyuan Yu, 2023. "Sustainable Enterprise Development in the Manufacturing Sector: Flexible Employment and Innovation in China," Sustainability, MDPI, vol. 15(10), pages 1-30, May.
    3. Jialun Yang & Frank Y. Feng, 2020. "Engineer CEOs and Corporate Innovation," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(6), pages 1-5.
    4. Liping Fu & Shan Zhang & Fan Wu, 2022. "The Impact of Compensation Gap on Corporate Innovation: Evidence from China’s Pharmaceutical Industry," IJERPH, MDPI, vol. 19(3), pages 1-14, February.

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