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Government support, innovation and productivity in the Haidian (Beijing) District

Author

Listed:
  • Huang C.
  • Wu Y.
  • Mohnen P.
  • Zhao Y.

    (UNU-MERIT)

Abstract

This paper examines whether the government support in favour of firms located in the Haidian district of Beijing, which includes the Zhongguancun Science Park, was effective in terms of innovation and economic performance. We use a dataset of 500 manufacturing firms that results from a merger of the 2007 nation-wide innovation survey and the Annual Survey of Industrial Enterprises databases fromthe National Bureau of Statistics. We find that among all firms state- or collectively-owned, nonstate- or collectively-owned and Hong Kong, Macau, Taiwan or other foreign-funded firms that received direct government support for innovative activities only the non-state- or collectively-owned domestic firms invested more in innovation than the firms that did not receive such support. However, despite higher government support, domestic firms have lower labour productivity than foreign-funded firms, including those funded from Hong Kong, Macau, or Taiwan.

Suggested Citation

  • Huang C. & Wu Y. & Mohnen P. & Zhao Y., 2013. "Government support, innovation and productivity in the Haidian (Beijing) District," MERIT Working Papers 2013-058, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2013058
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    File URL: https://www.merit.unu.edu/publications/wppdf/2013/wp2013-058.pdf
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    References listed on IDEAS

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    2. Boeing, Philipp, 2014. "China's R&D subsidies: Allocation and effectiveness," ZEW Discussion Papers 14-103, ZEW - Leibniz Centre for European Economic Research.
    3. Boeing, Philipp, 2016. "The allocation and effectiveness of China’s R&D subsidies - Evidence from listed firms," Research Policy, Elsevier, vol. 45(9), pages 1774-1789.

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    More about this item

    Keywords

    Technological Change; Government Policy;

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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