IDEAS home Printed from https://ideas.repec.org/p/eti/dpaper/14056.html
   My bibliography  Save this paper

What Types of Science and Technology Policies Stimulate Innovation? Evidence from Chinese firm-level data

Author

Listed:
  • ITO Asei
  • Zhuoran LI
  • Min WANG

Abstract

Since the Chinese government's rapid increase in expenditure on science and technology (S&T) during the 2000s, numerous related policies have been implemented by national-, provincial-, city-, and prefecture-level governments in China. Each level of government aims to promote innovation activities; however, few empirical evaluations have been conducted on each policy level and category. This paper estimates the treatment effects of innovation policies at each government level and category by using firm-level survey data from the inland city of Chengdu. Results suggest that S&T policies stimulate effective firm-level innovation activities; in particular, city-level policies and various government services. On the other hand, some policy categories, including tax incentives, seem to be inefficient. Restructuring the current policy menu and establishing further feedback mechanisms for S&T policy will improve the efficacy of such spending.

Suggested Citation

  • ITO Asei & Zhuoran LI & Min WANG, 2014. "What Types of Science and Technology Policies Stimulate Innovation? Evidence from Chinese firm-level data," Discussion papers 14056, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:14056
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/14e056.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. González, Xulia & Pazó, Consuelo, 2008. "Do public subsidies stimulate private R&D spending?," Research Policy, Elsevier, vol. 37(3), pages 371-389, April.
    2. David, Paul A. & Hall, Bronwyn H. & Toole, Andrew A., 2000. "Is public R&D a complement or substitute for private R&D? A review of the econometric evidence," Research Policy, Elsevier, vol. 29(4-5), pages 497-529, April.
    3. Padilla-Pérez, Ramón & Gaudin, Yannick, 2014. "Science, technology and innovation policies in small and developing economies: The case of Central America," Research Policy, Elsevier, vol. 43(4), pages 749-759.
    4. Hall, Bronwyn & Van Reenen, John, 2000. "How effective are fiscal incentives for R&D? A review of the evidence," Research Policy, Elsevier, vol. 29(4-5), pages 449-469, April.
    5. Lee, Myoung-jae, 2005. "Micro-Econometrics for Policy, Program and Treatment Effects," OUP Catalogue, Oxford University Press, number 9780199267699.
    6. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626, National Bureau of Economic Research, Inc.
    7. Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
    8. Bronwyn H. Hall & Nathan Rosenberg (ed.), 2010. "Handbook of the Economics of Innovation," Handbook of the Economics of Innovation, Elsevier, edition 1, volume 1, number 1.
    9. Clausen, Tommy H., 2009. "Do subsidies have positive impacts on R&D and innovation activities at the firm level?," Structural Change and Economic Dynamics, Elsevier, vol. 20(4), pages 239-253, December.
    10. Motohashi, Kazuyuki & Yun, Xiao, 2007. "China's innovation system reform and growing industry and science linkages," Research Policy, Elsevier, vol. 36(8), pages 1251-1260, October.
    11. Steinmueller, W. Edward, 2010. "Economics of Technology Policy," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1181-1218, Elsevier.
    12. Kazuyuki Motohashi, 2010. "R&D Activities of Manufacturing Multinationals in China: Structure, Motivations and Regional Differences," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(6), pages 56-72, November.
    Full references (including those not matched with items on IDEAS)

    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. Asei Ito & Zhuoran Li & Min Wang, 2017. "Multi-level and Multi-route Innovation Policies in China: A Programme Evaluation Based on Firm-level Data," Millennial Asia, , vol. 8(1), pages 78-107, April.
    2. Brüggemann, Julia & Proeger, Till, 2017. "The effectiveness of public subsidies for private innovations: An experimental approach," University of Göttingen Working Papers in Economics 266, University of Goettingen, Department of Economics, revised 2017.
    3. Becker, Lasse & Bizer, Kilian, 2015. "Federalism and innovation support for small and medium-sized enterprises: Empirical evidence in Europe," University of Göttingen Working Papers in Economics 245, University of Goettingen, Department of Economics.
    4. Beck, Mathias & Junge, Martin & Kaiser, Ulrich, 2017. "Public Funding and Corporate Innovation," IZA Discussion Papers 11196, Institute of Labor Economics (IZA).
    5. Antonelli, Cristiano, 2017. "Digital knowledge generation and the appropriability trade-off," Telecommunications Policy, Elsevier, vol. 41(10), pages 991-1002.
    6. Hottenrott, Hanna & Lopes-Bento, Cindy, 2014. "(International) R&D collaboration and SMEs: The effectiveness of targeted public R&D support schemes," Research Policy, Elsevier, vol. 43(6), pages 1055-1066.
    7. Ugur, Mehmet & Trushin, Eshref & Solomon, Edna, 2015. "UK and EU subsidies and private R&D investment: Is there input additionality?," MPRA Paper 68009, University Library of Munich, Germany, revised 16 Nov 2015.
    8. Silva Filipe & Carreira Carlos, 2017. "Financial Constraints: Do They Matter to Allocate R&D Subsidies?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 17(4), pages 1-26, October.
    9. Goerke, Björn & Albers, Sönke, 2016. "Long-term effects of subsidies on firm growth: introducing the concept of outcome additionality," EconStor Preprints 142164, ZBW - Leibniz Information Centre for Economics.
    10. Bronzini, Raffaello & Piselli, Paolo, 2016. "The impact of R&D subsidies on firm innovation," Research Policy, Elsevier, vol. 45(2), pages 442-457.
    11. Giovanni Cerulli, 2008. "Modelling and measuring the effects of public subsidies on business R&D: theoretical and econometric issues," CERIS Working Paper 200803, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    12. Peter Mayerhofer & Michael Klien, 2016. "Unternehmensinvestitionen in den österreichischen Bundesländern. Entwicklung – Struktur – Funktion regionaler Förderung," WIFO Studies, WIFO, number 61950, April.
    13. Brüggemann Julia & Proeger Till, 2017. "The Effectiveness of Public Subsidies for Private Innovations. An Experimental Approach," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 17(4), pages 1-21, October.
    14. Mª Beatriz Corchuelo Martínez-Azúa & Ester Martínez Ros, 2008. "Application of R & D fiscal incentives in Spanish manufacturing firms," Hacienda Pública Española / Review of Public Economics, IEF, vol. 187(4), pages 9-39, December.
    15. Thomas H. W. Ziesemer, 2021. "The Effects of R&D Subsidies and Publicly Performed R&D on Business R&D: A Survey," Hacienda Pública Española / Review of Public Economics, IEF, vol. 236(1), pages 171-205, March.
    16. Andrea Bellucci & Luca Pennacchio & Alberto Zazzaro, 2019. "Public R&D subsidies: collaborative versus individual place-based programs for SMEs," Small Business Economics, Springer, vol. 52(1), pages 213-240, January.
    17. Andrea Bellucci & Luca Pennacchio & Alberto Zazzaro, 2016. "Public subsidies for SME research and development: Empirical evaluation of collaborative versus individual place-based programs," Mo.Fi.R. Working Papers 133, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    18. Bettina Becker, 2013. "The Determinants of R&D Investment: A Survey of the Empirical Research," Discussion Paper Series 2013_09, Department of Economics, Loughborough University, revised Sep 2013.
    19. Chudnovsky, Daniel & López, Andrés & Rossi, Martín & Ubfal, Diego, 2006. "Evaluating a Program of Public Funding of Private Innovation Activities: An Econometric Study of FONTAR in Argentina," IDB Publications (Working Papers) 2829, Inter-American Development Bank.
    20. Syoum Negassi & Jean-Francois Sattin, 2014. "Evaluation of Public R&D Policy: A Meta-Regression Analysis," Working Papers 14-09, University of Delaware, Department of Economics.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:eti:dpaper:14056. 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: TANIMOTO, Toko (email available below). General contact details of provider: https://edirc.repec.org/data/rietijp.html .

    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.