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The Impact of state-owned capital intervention on the innovation capability of private high-tech enterprises

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  • Liu, Xian
  • Han, Yirui

Abstract

This paper takes listed private companies in the high-tech sector on the A-share market from 2015 to 2022 as samples to study the impact of state capital involvement on the innovation capabilities of private high-tech firms and its underlying mechanisms. It also analyzes the heterogeneity differences across varying levels of marketization and between advanced and traditional industries. The study finds that state capital involvement significantly enhances both the innovation input performance and innovation output performance of private high-tech firms. Government subsidies play a partial mediating role between state capital involvement and firm innovation capabilities, with state capital involvement further promoting firm innovation by increasing government subsidies. The promoting effect of state capital involvement on the innovation of private high-tech firms is more pronounced in firms located in regions with lower levels of marketization. Additionally, state capital involvement has a greater positive impact on the innovation performance of private high-tech firms in advanced industries.

Suggested Citation

  • Liu, Xian & Han, Yirui, 2025. "The Impact of state-owned capital intervention on the innovation capability of private high-tech enterprises," Finance Research Letters, Elsevier, vol. 86(PA).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pa:s1544612325016575
    DOI: 10.1016/j.frl.2025.108403
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    References listed on IDEAS

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