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The impact of industrial policy on corporate innovation

Author

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  • Tang, Jinquan
  • Hsiao, Hsiao-Fen
  • Xu, Xiangfeng

Abstract

Therefore, this study is based on the data of listed companies in the mainland and Taiwan regions from 2016 to 2022. The study proves that in the short term, the industrial policies in both the mainland and Taiwan regions have a positive promoting effect on corporate innovation input and output. However, in the long term, from the perspective of innovation input, the industrial policies in the mainland region did not initially increase corporate R&D intensity, but as the policies were implemented year by year, the R&D intensity of enterprises gradually increased.

Suggested Citation

  • Tang, Jinquan & Hsiao, Hsiao-Fen & Xu, Xiangfeng, 2025. "The impact of industrial policy on corporate innovation," Finance Research Letters, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:finlet:v:82:y:2025:i:c:s1544612325008773
    DOI: 10.1016/j.frl.2025.107618
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    References listed on IDEAS

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    1. Yan, Yufei & Tan, Linfang & Peng, Junxian, 2025. "Restraint or guidance? The impact of institutional investors' herding behavior on firm innovation," Finance Research Letters, Elsevier, vol. 85(PE).

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