Which firms will make full use of public technological subsidies to advance their innovation level? Combining with resource based view,agency theory and signaling theory,this paper analyzes the three-dimensional moderating role of firm scale and ownership in the effect of public technological subsidies on firm innovation by the unbalanced panel data with 6 718 observations of 2 382 firms from Zhangjiang High-tech Park of Shanghai from 2006 to 2009.It comes to the following results: firstly,based on the correction of selection bias of government subsidies by propensity score matching,government subsidies play a significantly positive role in the promotion of firm innovation; secondly,firm scale can affect the exertion of the leverage effect of government subsidies on firm innovation,i.e.,larger firm scale leads to stronger positive incentive role of government subsidies in firm innovation; thirdly,the role of public technological subsidies in firm innovation varies with ownership,namely compared with state-owned enterprises,the non-state-owned enterprises can make better use of public subsidies to improve innovation; fourthly,the moderating role of firm scale also depends on ownership,and by comparison,the incentive role of government subsidies in innovation in non-state-owned enterprises constantly strengthens with the increase in firm scale.
Who Benefits Most from Public Technological Subsidies? Based on Three-dimensional Interaction of Firm Scale and Ownership
Journal of Finance and Economics Vol. 42, Issue 07, pp. 87 - 98 (2016) DOI:10.16538/j.cnki.jfe.2016.07.008
Cite this article
Dong Jing, Zhai Haiyan, Yang Ziwei. Who Benefits Most from Public Technological Subsidies? Based on Three-dimensional Interaction of Firm Scale and Ownership[J]. Journal of Finance and Economics, 2016, 42(7): 87–98.
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