[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v74y2022icp716-727.html
   My bibliography  Save this article

Can government subsidies promote the green technology innovation transformation? Evidence from Chinese listed companies

Author

Listed:
  • Shao, Yanmin
  • Chen, Zhongfei
Abstract
Despite the impact of the Covid-19 pandemic on social activities and the global economy, the investment enthusiasm for green transformation in various countries has still been active. In fact, most countries have launched “green recovery” plans after 2020. Green technology innovation has attracted much attention, and many countries have introduced a series of subsidy policies to support green technology innovation transformation (GTIT). This study first discusses the influence of government subsidies on the GTIT of Chinese enterprises by using the manual collection and sorting of data concerning environmental protection subsidies, R&D subsidies, and talent subsidies, and the effects of these subsidies on different enterprises are analyzed. Empirical results show that environmental protection subsidies, R&D subsidies, and talent subsidies can significantly promote GTIT, and the effects of these subsidies on the GTIT of different enterprise are heterogeneous. The environmental protection subsidies, R&D subsidies, and talent subsidies have significant positive impacts on the GTIT of non-state-owned enterprises (non-SOEs) and high asset–liability-ratio enterprises. In contrast, only environmental protection and talent subsidies have significant positive effects on the GTIT of enterprises with low asset–liability-ratio. Environmental protection subsidies, R&D subsidies, and talent subsidies will promote the enterprises to increase their R&D investment, therefore enhancing their GTIT. Our research distinguishes the types of government subsidies for the first time and analyzes their impacts on different enterprises, which will be helpful for governments to improve relevant policies.

Suggested Citation

  • Shao, Yanmin & Chen, Zhongfei, 2022. "Can government subsidies promote the green technology innovation transformation? Evidence from Chinese listed companies," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 716-727.
    • Handle: RePEc:eee:ecanpo:v:74:y:2022:i:c:p:716-727
    DOI: 10.1016/j.eap.2022.03.020
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592622000492
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2022.03.020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nelson, Tim & Rai, Alan & Esplin, Ryan, 2021. "Overcoming the limitations of variable renewable production subsidies as a means of decarbonising electricity markets," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 544-556.
    2. Yu, Chin-Hsien & Wu, Xiuqin & Zhang, Dayong & Chen, Shi & Zhao, Jinsong, 2021. "Demand for green finance: Resolving financing constraints on green innovation in China," Energy Policy, Elsevier, vol. 153(C).
    3. Gao, Yuchen & Hu, Yimei & Liu, Xielin & Zhang, Huanren, 2021. "Can public R&D subsidy facilitate firms’ exploratory innovation? The heterogeneous effects between central and local subsidy programs," Research Policy, Elsevier, vol. 50(4).
    4. Barbieri, Nicolò & Marzucchi, Alberto & Rizzo, Ugo, 2020. "Knowledge sources and impacts on subsequent inventions: Do green technologies differ from non-green ones?," Research Policy, Elsevier, vol. 49(2).
    5. Oikawa, Koki & Managi, Shunsuke, 2015. "R&D in clean technology: A project choice model with learning," Journal of Economic Behavior & Organization, Elsevier, vol. 117(C), pages 175-195.
    6. Daron Acemoglu & Ufuk Akcigit & Douglas Hanley & William Kerr, 2016. "Transition to Clean Technology," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 52-104.
    7. Plank, Josef & Doblinger, Claudia, 2018. "The firm-level innovation impact of public R&D funding: Evidence from the German renewable energy sector," Energy Policy, Elsevier, vol. 113(C), pages 430-438.
    8. Richard E. Romano, 1989. "Aspects of R&D Subsidization," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 104(4), pages 863-873.
    9. Feldman, Maryann P. & Kelley, Maryellen R., 2006. "The ex ante assessment of knowledge spillovers: Government R&D policy, economic incentives and private firm behavior," Research Policy, Elsevier, vol. 35(10), pages 1509-1521, December.
    10. Banerjee, Rajabrata & Gupta, Kartick & Mudalige, Priyantha, 2020. "Do environmentally sustainable practices lead to financially less constrained firms? International evidence," International Review of Financial Analysis, Elsevier, vol. 68(C).
    11. Dai, Ou & Liu, Xiaohui, 2009. "Returnee entrepreneurs and firm performance in Chinese high-technology industries," International Business Review, Elsevier, vol. 18(4), pages 373-386, August.
    12. 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.
    13. Guo, Di & Guo, Yan & Jiang, Kun, 2018. "Governance and effects of public R&D subsidies: Evidence from China," Technovation, Elsevier, vol. 74, pages 18-31.
    14. Sung, Bongsuk, 2019. "Do government subsidies promote firm-level innovation? Evidence from the Korean renewable energy technology industry," Energy Policy, Elsevier, vol. 132(C), pages 1333-1344.
    15. Huang, Zhehao & Liao, Gaoke & Li, Zhenghui, 2019. "Loaning scale and government subsidy for promoting green innovation," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 148-156.
    16. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 2008. "Why Is Rent-Seeking So Costly to Growth?," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 213-218, Springer.
    17. Eduardo Duque‐Grisales & Javier Aguilera‐Caracuel & Jaime Guerrero‐Villegas & Encarnación García‐Sánchez, 2020. "Does green innovation affect the financial performance of Multilatinas? The moderating role of ISO 14001 and R&D investment," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3286-3302, December.
    18. Orsatti, Gianluca & Quatraro, Francesco & Pezzoni, Michele, 2020. "The antecedents of green technologies: The role of team-level recombinant capabilities," Research Policy, Elsevier, vol. 49(3).
    19. Yu, Feifei & Guo, Yue & Le-Nguyen, Khuong & Barnes, Stuart J. & Zhang, Weiting, 2016. "The impact of government subsidies and enterprises’ R&D investment: A panel data study from renewable energy in China," Energy Policy, Elsevier, vol. 89(C), pages 106-113.
    20. Bi, Kexin & Huang, Ping & Wang, Xiangxiang, 2016. "Innovation performance and influencing factors of low-carbon technological innovation under the global value chain: A case of Chinese manufacturing industry," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 275-284.
    21. Shuanglian Chen & Zhehao Huang & Benjamin M. Drakeford & Pierre Failler, 2019. "Lending Interest Rate, Loaning Scale, and Government Subsidy Scale in Green Innovation," Energies, MDPI, vol. 12(23), pages 1-22, November.
    22. Del Canto, Jesus Galende & Gonzalez, Isabel Suarez, 1999. "A resource-based analysis of the factors determining a firm's R&D activities," Research Policy, Elsevier, vol. 28(8), pages 891-905, November.
    23. Carboni, Oliviero A., 2017. "The effect of public support on investment and R&D: An empirical evaluation on European manufacturing firms," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 282-295.
    24. Lanjouw, Jean Olson & Mody, Ashoka, 1996. "Innovation and the international diffusion of environmentally responsive technology," Research Policy, Elsevier, vol. 25(4), pages 549-571, June.
    25. Zhang, Yu & Song, Junghyun & Hamori, Shigeyuki, 2011. "Impact of subsidy policies on diffusion of photovoltaic power generation," Energy Policy, Elsevier, vol. 39(4), pages 1958-1964, April.
    26. Byungchul Choi & M. V. Shyam Kumar & Fabio Zambuto, 2016. "Capital Structure and Innovation Trajectory: The Role of Debt in Balancing Exploration and Exploitation," Organization Science, INFORMS, vol. 27(5), pages 1183-1201, October.
    27. Giovanni Dosi, 2000. "Sources, Procedures, and Microeconomic Effects of Innovation," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 2, pages 63-114, Edward Elgar Publishing.
    28. Beamond, Maria Teresa & Farndale, Elaine & Härtel, Charmine E.J., 2016. "MNE translation of corporate talent management strategies to subsidiaries in emerging economies," Journal of World Business, Elsevier, vol. 51(4), pages 499-510.
    29. Wu, Aihua, 2017. "The signal effect of Government R&D Subsidies in China: Does ownership matter?," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 339-345.
    30. Clarysse, Bart & Wright, Mike & Mustar, Philippe, 2009. "Behavioural additionality of R&D subsidies: A learning perspective," Research Policy, Elsevier, vol. 38(10), pages 1517-1533, December.
    31. Oliviero Carboni, 2011. "R&D subsidies and private R&D expenditures: evidence from Italian manufacturing data," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(4), pages 419-439.
    32. Liu, Dayong & Chen, Tong & Liu, Xiaoyang & Yu, Yongze, 2019. "Do more subsidies promote greater innovation? Evidence from the Chinese electronic manufacturing industry," Economic Modelling, Elsevier, vol. 80(C), pages 441-452.
    33. Scott J. Wallsten, 2000. "The Effects of Government-Industry R&D Programs on Private R&D: The Case of the Small Business Innovation Research Program," RAND Journal of Economics, The RAND Corporation, vol. 31(1), pages 82-100, Spring.
    34. Dai, Xiaoyong & Cheng, Liwei, 2015. "The effect of public subsidies on corporate R&D investment: An application of the generalized propensity score," Technological Forecasting and Social Change, Elsevier, vol. 90(PB), pages 410-419.
    35. Holger Görg & Eric Strobl, 2007. "The Effect of R&D Subsidies on Private R&D," Economica, London School of Economics and Political Science, vol. 74(294), pages 215-234, May.
    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. Zhao, Shukuan & Xu, Baoda & Zhang, Weiyong, 2018. "Government R&D subsidy policy in China: An empirical examination of effect, priority, and specifics," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 75-82.
    2. 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.
    3. Guo, Di & Guo, Yan & Jiang, Kun, 2022. "Government R&D support and firms’ access to external financing: funding effects, certification effects, or both?," Technovation, Elsevier, vol. 115(C).
    4. Ren, Shenggang & Sun, Helin & Zhang, Tao, 2021. "Do environmental subsidies spur environmental innovation? Empirical evidence from Chinese listed firms," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    5. Carboni, Oliviero A., 2017. "The effect of public support on investment and R&D: An empirical evaluation on European manufacturing firms," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 282-295.
    6. Siying Long & Zhongju Liao, 2021. "Are fiscal policy incentives effective in stimulating firms' eco‐product innovation? The moderating role of dynamic capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3095-3104, November.
    7. Hottenrott, Hanna & Lopes-Bento, Cindy & Veugelers, Reinhilde, 2017. "Direct and cross scheme effects in a research and development," Research Policy, Elsevier, vol. 46(6), pages 1118-1132.
    8. Wu, Wei & Hu, Yingying & Wu, Qinwen, 2023. "Subsidies and tax incentives - Does it make a difference on TFP? Evidences from China's photovoltaic and wind listed companies," Renewable Energy, Elsevier, vol. 208(C), pages 645-656.
    9. Nast, Carolin & Broekel, Tom & Entner, Doris, 2024. "Fueling the fire? How government support drives technological progress and complexity," Research Policy, Elsevier, vol. 53(6).
    10. Xia, Li & Gao, Shuo & Wei, Jiuchang & Ding, Qiying, 2022. "Government subsidy and corporate green innovation - Does board governance play a role?," Energy Policy, Elsevier, vol. 161(C).
    11. Xun Zhang & Meng Shi & Biao Xu, 2019. "Do Government R&D Subsidies Cultivate Enterprises’ Voluntary National/Industry Standard-Setting for Sustainable Development?," Sustainability, MDPI, vol. 11(19), pages 1-20, October.
    12. Wei Huang & Mahnoor Sattar, 2021. "Corporate finance policies, subsidies and R&D: Evidence from China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 3875-3891, July.
    13. Sergio Afcha & Jose García-Quevedo, 2016. "The impact of R&D subsidies on R&D employment composition," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(6), pages 955-975.
    14. George A Shinkle & Jo-Ann Suchard, 2019. "Innovation in newly public firms: The influence of government grants, venture capital, and private equity," Australian Journal of Management, Australian School of Business, vol. 44(2), pages 248-281, May.
    15. Shuang Wang & Shukuan Zhao & Dong Shao & Hongyu Liu, 2020. "Impact of Government Subsidies on Manufacturing Innovation in China: The Moderating Role of Political Connections and Investor Attention," Sustainability, MDPI, vol. 12(18), pages 1-21, September.
    16. Bai, Rui & Lin, Boqiang & Liu, Xiying, 2021. "Government subsidies and firm-level renewable energy investment: New evidence from partially linear functional-coefficient models," Energy Policy, Elsevier, vol. 159(C).
    17. Wu, Ting & Yang, Shuwang & Tan, Jingjing, 2020. "Impacts of government R&D subsidies on venture capital and renewable energy investment -- an empirical study in China," Resources Policy, Elsevier, vol. 68(C).
    18. Kwangsoo Shin & Minkyung Choy & Chul Lee & Gunno Park, 2019. "Government R&D Subsidy and Additionality of Biotechnology Firms: The Case of the South Korean Biotechnology Industry," Sustainability, MDPI, vol. 11(6), pages 1-22, March.
    19. 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.
    20. Tang, Dapeng & Yu, Qian & Gebrehans, Mebrahtu Tesfagebreal & Wang, Lulu, 2023. "The asymmetric innovation effects of heterogeneous government subsidies: A new perspective from GDP target deviation," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).

    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:eee:ecanpo:v:74:y:2022:i:c:p:716-727. 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: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    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.