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Different policy instruments and the threshold effects on collaboration efficiency in China

Author

Listed:
  • Hua Cheng
  • Zhiying Zhang
  • Zhongju Liao
  • Yong Wei
  • Joseph Martial Nkongo Mvondo

Abstract

University–industry R&D collaboration is an important means to improve innovation efficiency; many governments have issued policies to promote it. The most frequent policy instruments implemented by policy-makers to foster firms’ innovation are subsidies and tax incentives. The article elaborated on how subsidies and tax incentives influence the R&D collaboration efficiency through a panel dataset from 2009 to 2015 in China. The result showed that subsidies and tax incentives have a positive effect on collaboration efficiency, and the effect of subsidies on output is bigger than that of tax incentives. Taking the intensity of subsidy as a threshold variable, there is a significant single threshold effect on collaboration efficiency. However, there is no threshold effect when the intensity of the tax incentive used as the threshold variable.

Suggested Citation

  • Hua Cheng & Zhiying Zhang & Zhongju Liao & Yong Wei & Joseph Martial Nkongo Mvondo, 2020. "Different policy instruments and the threshold effects on collaboration efficiency in China," Science and Public Policy, Oxford University Press, vol. 47(3), pages 348-359.
    • Handle: RePEc:oup:scippl:v:47:y:2020:i:3:p:348-359.
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