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Environmental science and pollution research international
Oct, 2021;28 (38): 53493-53506.

Does public subsidy promote sustainable innovation? The case of Chinese high-tech SMEs.

Dong Xiang, Tianzhen Zhao, Ning Zhang
Author Information
  1. Dong Xiang: Business School, Shandong Normal University, 1 Daxue Rd, Changqing, Jinan, 250000, Shandong Province, China.
  2. Tianzhen Zhao: School of Management, Qilu University of Technology (Shandong Academy of Sciences), 3501 Daxue Rd, Changqing, Jinan, 250000, Shandong Province, China.
  3. Ning Zhang: Institute of Blue and Green Development, Shandong University, 180 Wenhua West Rd, Huancui, Weihai, 264200, Shandong Province, China. zn928@naver.com.
PMID: 34036503 DOI: 10.1007/s11356-021-14555-5

Abstract

Government public support is an important policy tool to support enterprises in carrying out innovation and R&D in China. However, there is a lack of systematic research on the effect of direct and indirect government support on the innovation ability of Chinese high-tech enterprises, especially the relatively weak SMEs. This paper aims to explore the impact of public support on sustainable innovation by SMEs in China and identify the differences, if any, between direct and indirect support. By using the survey data of 2600 Chinese SMEs, we found that government support significantly and positively impacts both innovation input and output. In particular, we found that R&D intensity acts as a mediator between direct government support and innovation output; however, indirect support did not exhibit a significant mediating effect. Additionally, it was found that innovative sales can promote innovation investment by alleviating financial constraints; this is known as sustainable innovation.

Keywords

Government grants Government loans Public subsidy Small and medium-size enterprises Sustainable innovation Tax credits

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MeSH Term

China
Commerce
Government
Investments
Journal Article

Word Cloud

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