The Innovation Effect of Government Subsidy——A Discussion on the Optimal Subsidy Interval of Different Types of Innovation
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Abstract This paper uses panel threshold model to evaluate the innovation effect of government subsidy, and finds that: ① The innovation effect of government subsidy has certain heterogeneity with the different intensity of subsidy, and there is a subsidy interval to maximize innovation incentives. Through the intermediary effect model, it is found that“rent-seeking cost” may be an important channel for high subsidy to inhibit technological innovation of enterprises; ② Compared with utility model and design innovation, substantive innovation such as invention often needs higher subsidy threshold, and “moderate interval” of government subsidy also has played a more significant role in promoting substantive innovation such as invention; ③ We further investigate the difference of innovation incentive effect of government subsidy on technology intensive enterprises under different subsidy intensity. It is found that when the subsidy intensity is in the range of [0.020,0.086], the innovation incentive effect of government subsidy is the best. The above conclusions have obvious policy implications. According to the innovation types of enterprises, we implement differentiated subsidy policies, and dynamically adjust the subsidy intensity to the “appropriate range” of different innovation types, so as to effectively play the multi-dimensional innovation incentive effect of government subsidy.
ZHENG Yu. The Innovation Effect of Government Subsidy——A Discussion on the Optimal Subsidy Interval of Different Types of Innovation. Economic Survey, 2020, 37(4): 0142.
2020, Vol. 37 
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