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Substantive or strategic: Government R&D subsidies and green innovation

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Listed:
  • Zhang, Zeyi
  • Luo, Xuehua
  • Du, Jiating
  • Xu, Baoliang

Abstract

Based on the data of Chinese A-share-listed manufacturing enterprises, this paper empirically tests the impact of government R&D subsidies on green innovation from the perspective of innovation motivation. The results show that R&D subsidies promote strategic green innovation, while there is a converse-U curve relationship between R&D subsidies and substantive green innovation. There exists remarkable heterogeneity in ownership and R&D background of firms. Environmental regulation, public attention, and green finance weaken the positive relationship between R&D subsidies and strategic green innovation and strengthen the converse-U relationship between R&D subsidies and substantive green innovation.

Suggested Citation

  • Zhang, Zeyi & Luo, Xuehua & Du, Jiating & Xu, Baoliang, 2024. "Substantive or strategic: Government R&D subsidies and green innovation," Finance Research Letters, Elsevier, vol. 67(PA).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pa:s1544612324008262
    DOI: 10.1016/j.frl.2024.105796
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    5. Xiaoqing Dong & Guangshun Cheng & Yuan Ren, 2025. "Going Green on the Government’s Dime: Unpacking the Subsidy Boost in Family Firms," Sustainability, MDPI, vol. 17(10), pages 1-25, May.
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    8. Chuanhao Liu & Peng Cui & Hongxia Zhao & Zhanzhen Zhang & Yanshuo Zhu & Huijiao Liu, 2024. "Green Finance, Economic Policy Uncertainty, and Corporate ESG Performance," Sustainability, MDPI, vol. 16(22), pages 1-21, November.
    9. Wei, Danqi & Ahmad, Fayyaz & Chandio, Abbas Ali & Khan, Irfan, 2024. "Digital financial inclusion role to promote renewable energy technology innovation in Chinese prefectural cities: Moderating role of environmental governance," Renewable Energy, Elsevier, vol. 237(PB).
    10. Chengzhao Li & Zongjun Wang, 2024. "Investigating the Impact of Innovation Policies and Innovation Environment on Regional Innovation Capacity in China," Sustainability, MDPI, vol. 16(23), pages 1-16, November.
    11. Liu, Duan & Zhang, Tingfang & Jiang, Yuntian & Wan, Hong, 2025. "Do R&D subsidies promote or inhibit firm R&D collaboration? An empirical analysis on the role of risk tolerance in China," Global Finance Journal, Elsevier, vol. 64(C).

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