Government R&D Subsidy And Performance:the Moderating Effect Of Enterprise Product Diversification

In recent years,the Chinese government pays high attention to the problem of self-innovation in enterprises.In the "13th Five-Year plan",it highly stressed the leading role of technological innovation.In order to encourage enterprises make self-innovation and increase R&D investment,the Chinese government continuously improves subsidies for enterprises.Meanwhile,as China's economy has soared at astonishing rates,many companies began to conduct the strategy of diversified development to reduce excessive reliance on a single product.However,there exists a quite big difference in R&D strategy between enterprises with high degree of product diversification and ones with a single product,which may influence the performance of the subsidy policy.Thus,using the data of the non-financial listed companies consecutive trading for eight years from 2008 to 2015 on the Shanghai Stock Exchange and the Shenzhen Stock Exchange,this article studies the impact of China's R&D subsidy policy on corporate R&D investment,and whether the product diversification affects the performance of the R&D subsidy policy.Firstly,according to the purpose of R&D subsidy which is to promote the development of new products,we find out the relationship between R&D subsidy and product diversification.On this basis,combined with the advantages and disadvantages of diversification,the paper analyzes the mechanism of the impact of product diversification on the performance of R&D subsidy.In view of the above,we propose the research hypothesis of this paper.Then,on the basis of the relevant economic theory and the characteristics of the measurement formula of diversification,the paper deduces the function about the impact of product diversification on the performance of R&D subsidy policy.Finally,the conclusion is obtained by using the fixed effect model to analyze the impact of product diversification on the performance of R&D subsidy.The results show that higher the degree of enterprise product diversification is,worse the performance of R&D subsidy will be;this paper also obtain that subsidies for enterprises with related products diversification other than others with unrelated products diversification will result in better performance of R&D subsidy policy.It enlightens us that in order to improve the overall performance of R&D subsidy policy,we should reduce the subsidy for enterprises with high degree of product diversification;At the same time,the government can appropriately increase the amount of subsidies for the enterprises with related product diversification.The result can help to scientifically and rationally develop R&D subsidy policy.