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

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  • 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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    References listed on IDEAS

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    2. An, Jin & He, Guiqian & Ge, Shilong & Wu, Shanshan, 2025. "The impact of government green subsidies on corporate green innovation," Finance Research Letters, Elsevier, vol. 71(C).
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    5. Lou, Gaoxiang & Guo, Yuhan & Yin, Linsen & Lai, Zhixuan, 2025. "Impact of financial policies with carbon emission limits on capital-constrained manufacturers: Interest discount loan versus credit guarantee loan," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 203(C).
    6. Zhang, Zeyi & Luo, Xuehua & Du, Jiating & Xu, Baoliang, 2025. "Does green credit accelerate green transformation of heavily polluting enterprises?," International Review of Financial Analysis, Elsevier, vol. 98(C).
    7. Chen, Jinrui & Zhang, Yichang, 2025. "Substantive change or strategic response? Digital industrial convergence policy and urban green innovation," Innovation and Green Development, Elsevier, vol. 4(1).
    8. 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.
    9. Zhao, Xue & Liu, Guoqing & Zhao, Xiaorui, 2025. "Tax incentives, financial subsidies and high-quality development of enterprises," Finance Research Letters, Elsevier, vol. 86(PA).
    10. Fan, Xia & Li, Chuanju, 2025. "Credit-pool policy and new energy vehicle industrial innovation from the perspective of market regulation," Energy, Elsevier, vol. 322(C).
    11. Zhang, Wei & Li, Chengjiang & Jia, Tingwen & Wang, Shiyuan & Hao, Qianwen & Yang, Jing, 2025. "Evolutionary game analysis of sustainable aviation fuel promotion," Energy, Elsevier, vol. 322(C).
    12. Fan, Yuezhen & Shi, Linsong, 2025. "The role of government fiscal incentives in green technological innovation: A nonlinear analytical framework," International Review of Economics & Finance, Elsevier, vol. 103(C).
    13. Wang, Kenneth (Wei) & Zhong, Cassie (Xiaoqian), 2025. "The dark side of innovation policy uncertainty," Finance Research Letters, Elsevier, vol. 85(PC).
    14. 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.
    15. Zhao, Hongwei & Liao, Weidong, 2025. "The nexus between climate risk and corporate green innovation: the moderating role of supply chain finance," Finance Research Letters, Elsevier, vol. 85(PB).
    16. 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).
    17. 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.
    18. 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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