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A new dynamic classification of enterprises for implementing precise industrial policies

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  • Xu, Bing
  • Chen, Xiaohui
  • Wang, Yanyan

Abstract

The industrial policy design of nonpublic enterprises is an important research topic in public ownership in China. For the precise implementation of industrial policies, enterprises in the same industry must be divided into classifications. According to the micro characteristics of enterprises, a new dynamic classification framework of enterprises, including technological innovation enterprises, labor employment enterprises, and growth and development enterprises, is established by using principal component analysis and the KNN clustering method. Taking Taizhou, the birthplace of China's nonpublic enterprises, as an example, the research finds that growth and development enterprises account for the smallest proportion, and technological innovation enterprises account for the largest proportion. This paper implies that the government should adopt precise industrial policies: rewards and subsidies for technological innovation enterprises, tax exemption and tax reduction for labor employment enterprises, and improvements in the financing environment for growth development enterprises.

Suggested Citation

  • Xu, Bing & Chen, Xiaohui & Wang, Yanyan, 2020. "A new dynamic classification of enterprises for implementing precise industrial policies," Journal of Business Research, Elsevier, vol. 118(C), pages 463-473.
    • Handle: RePEc:eee:jbrese:v:118:y:2020:i:c:p:463-473
    DOI: 10.1016/j.jbusres.2020.07.009
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    References listed on IDEAS

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    Cited by:

    1. Wu Qiyin, 2022. "An Empirical Study of Enterprise Development Strategy on Business Performance in China," International Journal of Science and Business, IJSAB International, vol. 8(1), pages 42-57.

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