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Innovation output and state ownership: empirical evidence from China’s listed firms

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  • Henning Kroll
  • Kou Kou

Abstract

China has experienced a surge in innovation output in which state-owned enterprises (SOE) play an essential role. Using panel data of Chinese listed firms, this paper examines the influence of state ownership on innovation output at the firm level. Controlling for size, we analyse the effects of central and local government control on the number of firms’ patent applications in different time periods. Doing so, standard assumptions on state ownership’s inhibiting character are confirmed. However, we then qualify these findings by running separate models for different regions and sectors finding that the impact of state-control on innovation performance depends on a number of conditions. More precisely, state control of firms has a negative impact on innovation output in particular in China’s Northeast region and in mid-tech sectors whereas under other circumstances it does either not matter or can even exert a positive influence.

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  • Henning Kroll & Kou Kou, 2019. "Innovation output and state ownership: empirical evidence from China’s listed firms," Industry and Innovation, Taylor & Francis Journals, vol. 26(2), pages 176-198, February.
    • Handle: RePEc:taf:indinn:v:26:y:2019:i:2:p:176-198
    DOI: 10.1080/13662716.2018.1456323
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    Citations

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    Cited by:

    1. Lo, Dic & Gao, Ling & Lin, Yuchen, 2022. "State ownership and innovations: Lessons from the mixed-ownership reforms of China's listed companies," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 302-314.
    2. Samuel Amponsah Odei & Jan Stejskal & Viktor Prokop, 2021. "Revisiting the Factors Driving Firms’ Innovation Performances: the Case of Visegrad Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1331-1344, September.
    3. Zhao, Yueyang & Mao, Jinzhou, 2023. "Mixed blessing: Mixed ownership reform and innovation behaviour of Chinese state-owned enterprises," Finance Research Letters, Elsevier, vol. 56(C).
    4. Xin Pan & Xuanjin Chen & Paresha Sinha & Niannian Dong, 2020. "Are firms with state ownership greener? An institutional complexity view," Business Strategy and the Environment, Wiley Blackwell, vol. 29(1), pages 197-211, January.
    5. Joyce C. Wang & Jingtao Yi & Xiuping Zhang & Mike W. Peng, 2022. "Pyramidal Ownership and SOE Innovation," Journal of Management Studies, Wiley Blackwell, vol. 59(7), pages 1839-1868, November.
    6. Francesco Macheda & Roberto Nadalini, 2022. "China’s Escape from the Peripheral Condition: A Success Story?," Review of Radical Political Economics, Union for Radical Political Economics, vol. 54(1), pages 59-82, March.
    7. Javed, Muzhar & Wang, Fangjun & Usman, Muhammad & Ali Gull, Ammar & Uz Zaman, Qamar, 2023. "Female CEOs and green innovation," Journal of Business Research, Elsevier, vol. 157(C).
    8. Lin, Yongjia & Fu, Xiaoqing & Fu, Xiaolan, 2021. "Varieties in state capitalism and corporate innovation: Evidence from an emerging economy," Journal of Corporate Finance, Elsevier, vol. 67(C).
    9. Yueyang Zhao & Jinzhou Mao, 2023. "Mixed ownership reforms and the transparency of nonstate‐owned enterprises: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 271-284, January.
    10. Hui Wang & Anyin Jiang & Fayyaz Ahmad & Nabila Abid & Abbas Ali Chandio, 2024. "Attribute imbalances and innovation implementation based on grounded theory: A case of Chinese enterprises in Gansu Province," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 407-423, February.
    11. Li, Chengming & Xu, Yang & Zheng, Hao & Wang, Zeyu & Han, Haiting & Zeng, Liangen, 2023. "Artificial intelligence, resource reallocation, and corporate innovation efficiency: Evidence from China's listed companies," Resources Policy, Elsevier, vol. 81(C).
    12. Yang, Xuehui & Zhang, Huirong & Li, Yan, 2022. "High-speed railway, factor flow and enterprise innovation efficiency: An empirical analysis on micro data," Socio-Economic Planning Sciences, Elsevier, vol. 82(PB).
    13. Yidan Liang, 2023. "The effect of capital and labour distortion on innovation," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 63(2), pages 1709-1737, June.
    14. Massini, Silvia & Piscitello, Lucia & Shevtsova, Yevgeniya, 2023. "The complementarity effect of exporting, importing and R&D on the productivity of Ukrainian MNEs," International Business Review, Elsevier, vol. 32(3).
    15. 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.
    16. Sebastian Losacker & Ingo Liefner, 2020. "Implications of China's innovation policy shift: Does “indigenous” mean closed?," Growth and Change, Wiley Blackwell, vol. 51(3), pages 1124-1141, September.

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