IDEAS home Printed from https://ideas.repec.org/a/kap/rqfnac/v64y2025i4d10.1007_s11156-024-01345-6.html
   My bibliography  Save this article

Grabbing or helping hand? The impact of government subsidies on innovation and performance for firms in cultural and creative industries

Author

Listed:
  • Shu-Ching Chou

    (National Yunlin University of Science and Technology)

  • Yu-Hsiu Cheng

    (National Yunlin University of Science and Technology)

  • Yenn-Ru Chen

    (National Chengchi University)

Abstract

This study explores how government subsidies contribute to the growth of culture and creative industries (CCIs) by analyzing their impact on R&D spending, market value, operational performance, and social commitment among CCI firms in Taiwan. It finds that subsidies significantly boost R&D expenditures and market value but do not enhance operational performance due to the increased social commitment through additional employment. Subsidies do not affect borrowing conditions, but financially constrained CCI firms with high R&D investments see improved operational performance, while those with lower R&D spending do not. The study highlights the crucial role of subsidies in driving R&D and improving performance in innovative, constrained CCIs. Unlike manufacturing, fostering CCIs benefits both economic growth and cultural development. These findings emphasize the need for CCIs to invest in R&D and offer guidance to policymakers on refining subsidy strategies.

Suggested Citation

  • Shu-Ching Chou & Yu-Hsiu Cheng & Yenn-Ru Chen, 2025. "Grabbing or helping hand? The impact of government subsidies on innovation and performance for firms in cultural and creative industries," Review of Quantitative Finance and Accounting, Springer, vol. 64(4), pages 1719-1755, May.
    • Handle: RePEc:kap:rqfnac:v:64:y:2025:i:4:d:10.1007_s11156-024-01345-6
    DOI: 10.1007/s11156-024-01345-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11156-024-01345-6
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11156-024-01345-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Government subsidy; Cultural and creative industries (CCIs); R&D; Performance; Creative economy;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:rqfnac:v:64:y:2025:i:4:d:10.1007_s11156-024-01345-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.