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The impact of business-government relations on firms' innovation: Evidence from Chinese manufacturing industry

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  • Tian, Yuan
  • Wang, Yupei
  • Xie, Xuemei
  • Jiao, Jie
  • Jiao, Hao

Abstract

Using stratified sample survey data from World Bank Enterprise Surveys, we conduct an empirical study of the relationship between business-government relations and firms' innovation in the Chinese manufacturing industry and explore both the internal and external boundaries that affect this relationship. The results suggest that in China, a transition economy in Northeast Asia, business-government relations have a significantly positive effect on firms' innovation. Female managers positively moderate the relationship between business-government relations and firms' innovation, but the market competition intensity negatively moderates the relationship between business-government relations and firms' innovation. This article makes some theoretical contributions to the study of firms' innovation, and, at the same time, provides a realistic operating path for firms to improve innovation.

Suggested Citation

  • Tian, Yuan & Wang, Yupei & Xie, Xuemei & Jiao, Jie & Jiao, Hao, 2019. "The impact of business-government relations on firms' innovation: Evidence from Chinese manufacturing industry," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 1-8.
    • Handle: RePEc:eee:tefoso:v:143:y:2019:i:c:p:1-8
    DOI: 10.1016/j.techfore.2019.02.007
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