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Impact of industry association on the innovation of small and micro enterprises

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  • Huwei Wen
  • Yinghao Xu
  • Kuashi Zou

Abstract

Employing OLS, GIVE and propensity score-matching (PSM) methods, this study investigates the impact of industry association on the innovation of small and micro enterprises. Using a survey of China micro and small enterprises (CMES), we find that industry association significantly and positively affects the innovative behaviour of small and micro enterprises, and political connection can enhance the innovative effect of industry association. Enterprises with specific advantages and entrepreneurs with strong innovation awareness and high human capital are likely to be an industry association member. Despite certain discriminations for micro firms, industry association welcomes innovative entrepreneurs and promotes the innovation of its members.

Suggested Citation

  • Huwei Wen & Yinghao Xu & Kuashi Zou, 2021. "Impact of industry association on the innovation of small and micro enterprises," Applied Economics Letters, Taylor & Francis Journals, vol. 28(15), pages 1259-1263, September.
    • Handle: RePEc:taf:apeclt:v:28:y:2021:i:15:p:1259-1263
    DOI: 10.1080/13504851.2020.1808167
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