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Innovation policy in China: nationally promulgated but locally implemented

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  • Zhen Sun
  • Zhen Lei
  • Zhifeng Yin

Abstract

In China, policies are often announced at the national level but implemented locally. Innovation policies are no exceptions. This article studies China’s 50% R&D tax deduction policy, a key innovation policy promulgated by the central government in 2006. We find that the degree to which the policy was implemented during the period of 2006–2009 varied across the provinces and industries, which in turn had significant impacts on local firms’ innovation output. The findings of the heterogeneity in local implementation of national innovation policies are of important implications for both policy makers and innovation scholars.

Suggested Citation

  • Zhen Sun & Zhen Lei & Zhifeng Yin, 2018. "Innovation policy in China: nationally promulgated but locally implemented," Applied Economics Letters, Taylor & Francis Journals, vol. 25(21), pages 1481-1486, December.
    • Handle: RePEc:taf:apeclt:v:25:y:2018:i:21:p:1481-1486
    DOI: 10.1080/13504851.2018.1430315
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    Cited by:

    1. Youjia Li & Yi Li & Shunli Qiu, 2023. "Analysis on the Effectiveness and Mechanisms of Public Policies to Promote Innovation of High-Tech Startups in Makerspaces," Sustainability, MDPI, vol. 15(9), pages 1-22, April.
    2. Boeing, Philipp & Peters, Bettina, 2021. "Misappropriation of R&D Subsidies: Estimating Treatment Effects with One-Sided Noncompliance," IZA Discussion Papers 14852, Institute of Labor Economics (IZA).

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