Imitative Technology or Original Technology? : Impact of Government Intervention on Corporate Innovation

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)33_Other conference paperpeer-review

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Detail(s)

Original languageEnglish
Number of pages47
Publication statusPresented - 5 Aug 2019

Conference

TitleSingapore Economic Review Conference 2019 (SERC)
LocationMandarin Orchard Hotel
PlaceSingapore
Period5 - 7 August 2019

Abstract

In order to strengthen the leading role of firms in technological innovation, the Chinese government has so far provided a serious of policies to provide sci-tech supports. Based on the Chinese Measures for the Administration of High-Tech Enterprise Certification carried out in 2008, this paper collects the data of A-shared listed companies in 2008-2017, uses the method of endogenous switching regression model and propensity score matching method to examine the effect of high-tech enterprise identity policy on corporate innovation. This paper empirically shows that the certification policy can increase imitative technology but decrease original technology during the preferential tax period. In addition, original technology will significantly increase in the second and the third year before the certification and it will also increase in the second, fourth and fifth year after the end. And a firm which has less government subsidies, smaller firm age, minor firm scale, larger R&D investment and higher human capital investment rate of return has higher probability to be high-tech. What’s more, there are heterogeneous impacts of high-tech subsidiaries, state-owned property rights, the high-tech industrial development zones, rate of return on common stockholders’ equity, and the different versions of the certification policy on original technology and imitative technology. This article suggests that Chinese government should adjust and improve the criteria of high-tech enterprise certification indicators, a firm can decide to be high-tech or not according to the expected net benefits, and government intervention could inspire corporate innovation through economic supports such as tax incentives.

Research Area(s)

  • High-tech Enterprise Certification, Patent, Imitative Technology, Original Technology, Endogenous Switching Regression Model, Propensity Score Matching Method

Bibliographic Note

Research Unit(s) information for this publication is provided by the author(s) concerned.

Citation Format(s)

Imitative Technology or Original Technology? Impact of Government Intervention on Corporate Innovation. / Chen, Zhenzhen; Kwan, Yum K.; Xu, Changsheng.

2019. Singapore Economic Review Conference 2019 (SERC), Singapore.

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)33_Other conference paperpeer-review