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Implementation strategy of MEI policy and SME innovation: a Chinese analysis

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  • Kai Zhao
  • Jun-mei Ye

Abstract

How to unify various policy tools into the same econometric model framework has always been an important research issue. This paper clarifies the connotation of MEI policy’s tool combination, scientifically identifies the actual impact of R&D subsidy tool, tax incentive tool, and their combination on SME innovation, and explores the best implementation strategy of MEI policy, by designing a reasonable and applicable policy identification framework. This paper confirms that R&D subsidy tool and tax incentive tool of MEI policy can form the obvious complementary effect in promoting substantive innovation of SMEs, but the mutually exclusive effect in promoting strategic innovation of SMEs. It is shown that the single tax incentive is the best implementation strategy of MEI policy to stimulate innovation for SMEs located in the central region, and the policy tool combination strategy is the best implementation scheme of MEI policy for SMEs located in the western region.

Suggested Citation

  • Kai Zhao & Jun-mei Ye, 2023. "Implementation strategy of MEI policy and SME innovation: a Chinese analysis," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 36(1), pages 2120036-212, December.
    • Handle: RePEc:taf:reroxx:v:36:y:2023:i:1:p:2120036
    DOI: 10.1080/1331677X.2022.2120036
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