IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v44y2023i8p4507-4522.html
   My bibliography  Save this article

Quantity or quality? Policy effects on innovations in the wind power industry in China

Author

Listed:
  • Zihao Jiang
  • Jiarong Shi

Abstract

This study evaluates the effects of policy on the quantity and quality of innovations based on microdata collected from Chinese enterprises from 2006 to 2020 and then identifies the moderating effect of technological opportunity. The results indicate that while policy significantly increases the quantity of innovation, it inhibits its quality, and when technological opportunities are added to this mix, it does not significantly moderate the impact of policy on innovation quantity but does weaken its negative effect on innovation quality.

Suggested Citation

  • Zihao Jiang & Jiarong Shi, 2023. "Quantity or quality? Policy effects on innovations in the wind power industry in China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(8), pages 4507-4522, December.
  • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:8:p:4507-4522
    DOI: 10.1002/mde.3965
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3965
    Download Restriction: no

    File URL: https://libkey.io/10.1002/mde.3965?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
    ---><---

    References listed on IDEAS

    as
    1. Higham, Kyle & de Rassenfosse, Gaétan & Jaffe, Adam B., 2021. "Patent Quality: Towards a Systematic Framework for Analysis and Measurement," Research Policy, Elsevier, vol. 50(4).
    2. Feng, Wei & Li, Jiajia, 2021. "International technology spillovers and innovation quality: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 289-308.
    3. Grazia Cecere & Sascha Rexhäuser & Patrick Schulte, 2019. "From less promising to green? Technological opportunities and their role in (green) ICT innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 28(1), pages 45-63, January.
    4. Cao, Xiaping & Cumming, Douglas & Zhou, Sili, 2020. "State ownership and corporate innovative efficiency," Emerging Markets Review, Elsevier, vol. 44(C).
    5. Yang, Chao & Huang, Cui & Su, Jun, 2018. "An improved SAO network-based method for technology trend analysis: A case study of graphene," Journal of Informetrics, Elsevier, vol. 12(1), pages 271-286.
    6. Dirk Meissner & Sandrine Kergroach, 2021. "Innovation policy mix: mapping and measurement," The Journal of Technology Transfer, Springer, vol. 46(1), pages 197-222, February.
    7. John Cantwell & Birgitte Andersen, 1996. "A Statistical Analysis of Corporate Technological Leadership Historically," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 4(3), pages 211-234.
    8. Li, Xibao, 2012. "Behind the recent surge of Chinese patenting: An institutional view," Research Policy, Elsevier, vol. 41(1), pages 236-249.
    9. Huang, Zhehao & Liao, Gaoke & Li, Zhenghui, 2019. "Loaning scale and government subsidy for promoting green innovation," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 148-156.
    10. Ola Olsson, 2005. "Technological Opportunity and Growth," Journal of Economic Growth, Springer, vol. 10(1), pages 31-53, January.
    11. Julien Jourdan & Ilze Kivleniece, 2017. "Too Much of a Good Thing? The Dual Effect of Public Sponsorship on Organizational Performance," Post-Print hal-01488178, HAL.
    12. Haner, Udo-Ernst, 2002. "Innovation quality--a conceptual framework," International Journal of Production Economics, Elsevier, vol. 80(1), pages 31-37, November.
    13. Kim, Juram & Kim, Seungho & Lee, Changyong, 2019. "Anticipating technological convergence: Link prediction using Wikipedia hyperlinks," Technovation, Elsevier, vol. 79(C), pages 25-34.
    14. Breschi, Stefano & Malerba, Franco & Orsenigo, Luigi, 2000. "Technological Regimes and Schumpeterian Patterns of Innovation," Economic Journal, Royal Economic Society, vol. 110(463), pages 388-410, April.
    15. Naseer, Saima & Khawaja, Kausar Fiaz & Qazi, Shadab & Syed, Fauzia & Shamim, Fatima, 2021. "How and when information proactiveness leads to operational firm performance in the banking sector of Pakistan? The roles of open innovation, creative cognitive style, and climate for innovation," International Journal of Information Management, Elsevier, vol. 56(C).
    16. de Jong, Jeroen P.J. & Gillert, Nils Lennart & Stock, Ruth M., 2018. "First adoption of consumer innovations: Exploring market failure and alleviating factors," Research Policy, Elsevier, vol. 47(2), pages 487-497.
    17. Magro, Edurne & Wilson, James R., 2013. "Complex innovation policy systems: Towards an evaluation mix," Research Policy, Elsevier, vol. 42(9), pages 1647-1656.
    18. Hu, Gang-Gao, 2021. "Is knowledge spillover from human capital investment a catalyst for technological innovation? The curious case of fourth industrial revolution in BRICS economies," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    19. Caliendo, Marco & Künn, Steffen & Weissenberger, Martin, 2020. "Catching up or lagging behind? The long-term business and innovation potential of subsidized start-ups out of unemployment," Research Policy, Elsevier, vol. 49(10).
    20. Lee, Jeongwon & Hwang, Junseok & Kim, Hana, 2022. "Different government support effects on emerging and mature ICT sectors," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    21. Cucculelli, Marco & Peruzzi, Valentina, 2020. "Innovation over the industry life-cycle. Does ownership matter?," Research Policy, Elsevier, vol. 49(1).
    22. Opland, Leif Erik & Pappas, Ilias O. & Engesmo, Jostein & Jaccheri, Letizia, 2022. "Employee-driven digital innovation: A systematic review and a research agenda," Journal of Business Research, Elsevier, vol. 143(C), pages 255-271.
    23. Bart Leten & Rene Belderbos & Bart Van Looy, 2016. "Entry and Technological Performance in New Technology Domains: Technological Opportunities, Technology Competition and Technological Relatedness," Journal of Management Studies, Wiley Blackwell, vol. 53(8), pages 1257-1291, December.
    24. Bronwyn H Hall & Georg von Graevenitz & Christian Helmers, 2021. "Technology entry in the presence of patent thickets," Oxford Economic Papers, Oxford University Press, vol. 73(2), pages 903-926.
    25. Hosan, Shahadat & Rahman, Md Matiar & Karmaker, Shamal Chandra & Saha, Bidyut Baran, 2023. "Energy subsidies and energy technology innovation: Policies for polygeneration systems diffusion," Energy, Elsevier, vol. 267(C).
    26. Mulier, Klaas & Samarin, Ilia, 2021. "Sector heterogeneity and dynamic effects of innovation subsidies: Evidence from Horizon 2020," Research Policy, Elsevier, vol. 50(10).
    27. Ma, Tingting & Zhou, Xiao & Liu, Jia & Lou, Zhenkai & Hua, Zhaoting & Wang, Ruitao, 2021. "Combining topic modeling and SAO semantic analysis to identify technological opportunities of emerging technologies," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    28. Katila, Riitta & Mang, Paul Y., 2003. "Exploiting technological opportunities: the timing of collaborations," Research Policy, Elsevier, vol. 32(2), pages 317-332, February.
    29. Dirk Meissner & Sandrine Kergroach, 2021. "Correction to: Innovation policy mix: mapping and measurement," The Journal of Technology Transfer, Springer, vol. 46(5), pages 1705-1705, October.
    30. Lin, Jia & Wu, Ho-Mou & Wu, Howei, 2021. "Could government lead the way? Evaluation of China's patent subsidy policy on patent quality," China Economic Review, Elsevier, vol. 69(C).
    31. Yoon, Byungun & Park, Inchae & Coh, Byoung-youl, 2014. "Exploring technological opportunities by linking technology and products: Application of morphology analysis and text mining," Technological Forecasting and Social Change, Elsevier, vol. 86(C), pages 287-303.
    32. Bastian Rake, 2017. "Determinants of pharmaceutical innovation: the role of technological opportunities revisited," Journal of Evolutionary Economics, Springer, vol. 27(4), pages 691-727, September.
    33. Soonwoo Kwon & Jihong Lee & Sokbae Lee, 2017. "International Trends in Technological Progress: Evidence from Patent Citations, 1980–2011," Economic Journal, Royal Economic Society, vol. 127(605), pages 50-70, October.
    34. Hyytinen, Ari & Toivanen, Otto, 2005. "Do financial constraints hold back innovation and growth?: Evidence on the role of public policy," Research Policy, Elsevier, vol. 34(9), pages 1385-1403, November.
    35. Szücs, Florian, 2020. "Do research subsidies crowd out private R&D of large firms? Evidence from European Framework Programmes," Research Policy, Elsevier, vol. 49(3).
    36. Fogarty, James J. & Sagerer, Simon, 2016. "Exploration externalities and government subsidies: The return to government," Resources Policy, Elsevier, vol. 47(C), pages 78-86.
    37. Ren, Shenggang & Sun, Helin & Zhang, Tao, 2021. "Do environmental subsidies spur environmental innovation? Empirical evidence from Chinese listed firms," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    38. Cheryl Xiaoning Long & Jun Wang, 2019. "China’s patent promotion policies and its quality implications," Science and Public Policy, Oxford University Press, vol. 46(1), pages 91-104.
    39. Taghizadeh-Hesary, Farhad & Dong, Kangyin & Zhao, Congyu & Phoumin, Han, 2023. "Can financial and economic means accelerate renewable energy growth in the climate change era? The case of China," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 730-743.
    40. Song, Yang & Sahut, Jean-Michel & Zhang, Zhiyuan & Tian, Yifan & Hikkerova, Lubica, 2022. "The effects of government subsidies on the sustainable innovation of university-industry collaboration," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    41. Dang, Jianwei & Motohashi, Kazuyuki, 2015. "Patent statistics: A good indicator for innovation in China? Patent subsidy program impacts on patent quality," China Economic Review, Elsevier, vol. 35(C), pages 137-155.
    42. Jiarong Shi & Zihao Jiang & Biao Luo, 2022. "Economic policy, regulatory policy, or soft policy: Which category of policy can effectively improve the green innovation of Chinese wind power industry?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2284-2298, September.
    43. Jun Li & Ruby P. Lee & Junbao Wan, 2020. "Indirect effects of direct subsidies: an examination of signaling effects," Industry and Innovation, Taylor & Francis Journals, vol. 27(9), pages 1040-1061, October.
    44. Aruna Ranganathan & Ranjitha Shivaram, 2021. "Getting Their Hands Dirty: How Female Managers Motivate Female Worker Productivity Through Subordinate Scut Work," Management Science, INFORMS, vol. 67(5), pages 3299-3320, May.
    45. Wang, Yanbo & Li, Jizhen & Furman, Jeffrey L., 2017. "Firm performance and state innovation funding: Evidence from China’s innofund program," Research Policy, Elsevier, vol. 46(6), pages 1142-1161.
    46. Stefano Bianchini & Jackie Krafft & Francesco Quatraro & Jacques-Laurent Ravix, 2018. "Corporate governance and innovation: does firm age matter?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(2), pages 349-370.
    47. Schuman, Sara & Lin, Alvin, 2012. "China's Renewable Energy Law and its impact on renewable power in China: Progress, challenges and recommendations for improving implementation," Energy Policy, Elsevier, vol. 51(C), pages 89-109.
    48. Rasmus Lema & Xiaolan Fu & Roberta Rabellotti, 2020. "Green windows of opportunity: latecomer development in the age of transformation toward sustainability," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 29(5), pages 1193-1209.
    49. Jong, Jeroen de & Gillert, Lennart & Stock, Ruth, 2018. "First Adoption of Consumer Innovations: Exploring Market Failure and Alleviating Factors," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 110834, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    50. Duan, Yunlong & Yang, Meng & Huang, Lei & Chin, Tachia & Fiano, Fabio & de Nuccio, Elbano & Zhou, Li, 2022. "Unveiling the impacts of explicit vs. tacit knowledge hiding on innovation quality: The moderating role of knowledge flow within a firm," Journal of Business Research, Elsevier, vol. 139(C), pages 1489-1500.
    51. Liu, Jingjing & Zhao, Min & Wang, Yanbo, 2020. "Impacts of government subsidies and environmental regulations on green process innovation: A nonlinear approach," Technology in Society, Elsevier, vol. 63(C).
    52. Wang, Ming-Yeu & Fang, Shih-Chieh & Chang, Yu-Hsuan, 2015. "Exploring technological opportunities by mining the gaps between science and technology: Microalgal biofuels," Technological Forecasting and Social Change, Elsevier, vol. 92(C), pages 182-195.
    53. F. Ted Tschang & Gokhan Ertug, 2016. "New Blood as an Elixir of Youth: Effects of Human Capital Tenure on the Explorative Capability of Aging Firms," Organization Science, INFORMS, vol. 27(4), pages 873-892, August.
    54. Zihao Jiang & Jiarong Shi & Zhiying Liu & Lei Gong, 2022. "Beyond bean counting: Is the policy effective for the innovation efficiency of wind power industry in China?," Research Evaluation, Oxford University Press, vol. 31(1), pages 132-144.
    55. Boeing, Philipp & Mueller, Elisabeth, 2019. "Measuring China's patent quality: Development and validation of ISR indices," China Economic Review, Elsevier, vol. 57(C).
    56. Jiang, Zihao & Shi, Jiarong, 2023. "Government intervention and technological innovation in the wind power industry in China: The role of industrial environmental turbulence," Applied Energy, Elsevier, vol. 344(C).
    57. Wang, Xiaozhen & Zou, Honghui, 2018. "Study on the effect of wind power industry policy types on the innovation performance of different ownership enterprises: Evidence from China," Energy Policy, Elsevier, vol. 122(C), pages 241-252.
    58. Lin, Boqiang & Chen, Yufang, 2019. "Impacts of policies on innovation in wind power technologies in China," Applied Energy, Elsevier, vol. 247(C), pages 682-691.
    59. Die Hu & Maoyan She & Lingfeng Ye & Zhiwei Wang, 2021. "The more the merrier? Inventor team size, diversity, and innovation quality," Science and Public Policy, Oxford University Press, vol. 48(4), pages 508-520.
    60. Rodríguez González, Ana Belén & Vinagre Díaz, Juan José & Wilby, Mark Richard, 2012. "Dedicated tax/subsidy scheme for reducing emissions by promoting innovation in buildings: The EcoTax," Energy Policy, Elsevier, vol. 51(C), pages 417-424.
    61. Islam, Md. Monirul & Irfan, Muhammad & Shahbaz, Muhammad & Vo, Xuan Vinh, 2022. "Renewable and non-renewable energy consumption in Bangladesh: The relative influencing profiles of economic factors, urbanization, physical infrastructure and institutional quality," Renewable Energy, Elsevier, vol. 184(C), pages 1130-1149.
    62. Christian Fisch & Joern Block & Philipp Sandner, 2016. "Chinese university patents: quantity, quality, and the role of subsidy programs," The Journal of Technology Transfer, Springer, vol. 41(1), pages 60-84, February.
    63. Ludvig, Alice & Sarkki, Simo & Weiss, Gerhard & Živojinović, Ivana, 2021. "Policy impacts on social innovation in forestry and back: Institutional change as a driver and outcome," Forest Policy and Economics, Elsevier, vol. 122(C).
    64. Fang, Sheng & Goh, Chorching & Roberts, Mark & Xu, Lixin Colin & Zeufack, Albert, 2022. "Female entrepreneurs and productivity around the world: Rule of law, network, culture, and gender equality," World Development, Elsevier, vol. 154(C).
    65. Giovanni Gavetti, 2012. "PERSPECTIVE—Toward a Behavioral Theory of Strategy," Organization Science, INFORMS, vol. 23(1), pages 267-285, February.
    66. Jean O. Lanjouw & Mark Schankerman, 2004. "Patent Quality and Research Productivity: Measuring Innovation with Multiple Indicators," Economic Journal, Royal Economic Society, vol. 114(495), pages 441-465, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bei Liu & Jinmin Wang & Xinle Tong & Zhihua Zhou & Zhaoxuan Qiu, 2024. "Institutional investor shareholding and the quality of corporate innovation: Moderating effects based on internal and external environment," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(1), pages 326-338, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jiang, Zihao & Shi, Jiarong, 2023. "Government intervention and technological innovation in the wind power industry in China: The role of industrial environmental turbulence," Applied Energy, Elsevier, vol. 344(C).
    2. Jiang, Zihao & Liu, Zhiying, 2022. "Policies and exploitative and exploratory innovations of the wind power industry in China: The role of technological path dependence," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    3. Jiarong Shi & Zihao Jiang & Biao Luo, 2022. "Economic policy, regulatory policy, or soft policy: Which category of policy can effectively improve the green innovation of Chinese wind power industry?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 2284-2298, September.
    4. Wu, Howei & Lin, Jia & Wu, Ho-Mou, 2022. "Investigating the real effect of China’s patent surge: New evidence from firm-level patent quality data," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 422-442.
    5. Luo, Lianfa & Cheng, Zhiming & Ye, Qingqing & Cheng, Yanjun & Smyth, Russell & Yang, Zhiqing & Zhang, Le, 2024. "Nonmonetary awards and innovation: Evidence from winning China's Top Brand Contest," China Economic Review, Elsevier, vol. 86(C).
    6. Dai, Xiaoyong & Wang, Mengqi, 2024. "Unintended effects of tax incentives on firms’ strategic patenting," Journal of Economic Behavior & Organization, Elsevier, vol. 219(C), pages 1-24.
    7. Jiafeng Gu, 2021. "Effects of Patent Policy on Outputs and Commercialization of Academic Patents in China: A Spatial Difference-in-Differences Analysis," Sustainability, MDPI, vol. 13(23), pages 1-17, December.
    8. Ren, Haiying & Zhao, Yuhui, 2021. "Technology opportunity discovery based on constructing, evaluating, and searching knowledge networks," Technovation, Elsevier, vol. 101(C).
    9. Jiafeng Gu, 2024. "The Impact of Regional Patent Policies on University Technology Transfer: Empirical Evidence from China," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 18770-18796, December.
    10. Lin, Jia & Wu, Ho-Mou & Wu, Howei, 2021. "Could government lead the way? Evaluation of China's patent subsidy policy on patent quality," China Economic Review, Elsevier, vol. 69(C).
    11. Huang, Kenneth Guang-Lih & Huang, Can & Shen, Huijun & Mao, Hao, 2021. "Assessing the value of China's patented inventions," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    12. Wang, Yanyu & You, Qinghua & Qiao, Yuanbo, 2022. "Political genes drive innovation: Political endorsements and low-quality innovation," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 407-417.
    13. Wang, Xue & Fan, Li-Wei & Zhang, Hongyan, 2023. "Policies for enhancing patent quality: Evidence from renewable energy technology in China," Energy Policy, Elsevier, vol. 180(C).
    14. Choi, Kwang Hun & Kwon, Gyu Hyun, 2023. "Strategies for sensing innovation opportunities in smart grids: In the perspective of interactive relationships between science, technology, and business," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    15. Tea Petrin & Dragana Radicic, 2023. "Instrument policy mix and firm size: is there complementarity between R&D subsidies and R&D tax credits?," The Journal of Technology Transfer, Springer, vol. 48(1), pages 181-215, February.
    16. Wu, Yingwen & Ji, Yangjian, 2023. "Identifying firm-specific technology opportunities from the perspective of competitors by using association rule mining," Journal of Informetrics, Elsevier, vol. 17(2).
    17. Liu, Zhenfeng & Feng, Jian & Uden, Lorna, 2023. "Technology opportunity analysis using hierarchical semantic networks and dual link prediction," Technovation, Elsevier, vol. 128(C).
    18. Pan, Xia & Cheng, Wenyin & Gao, Yuning, 2022. "The impact of privatization of state-owned enterprises on innovation in China: A tale of privatization degree," Technovation, Elsevier, vol. 118(C).
    19. Giorgio Prodi & Francesco Nicolli & Federico Frattini, 2020. "Embeddedness and local patterns of innovation: evidence from Chinese prefectural cities," Economic Complexity and Evolution, in: Andreas Pyka & Keun Lee (ed.), Innovation, Catch-up and Sustainable Development, pages 283-307, Springer.
    20. Arianna Martinelli & Julia Mazzei & Daniele Moschella, 2022. "Patent disputes as emerging barriers to technology entry? Empirical evidence from patent opposition," LEM Papers Series 2022/12, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

    More about this item

    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:wly:mgtdec:v:44:y:2023:i:8:p:4507-4522. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    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.