Government Subsidy And Innovation Performance

Under the background of economic globalization,innovation is the key factor to driver the enterprises to maintain sustainable competitive advantage,and also is an important source of national economic growth.The state stimulates the innovation power of enterprises through government subsidies in the form of research and development subsidies and tax incentives,and these actions enhance the global competitive advantage of enterprises.However,a large number of current practices shows that there are significant differences in the incentive effects of government subsidies for different enterprises.Ownership and international expansion as the typical characteristics of Chinese enterprises under the background of economic globalization will inevitably have an important impact on above differences.However,Current research often analysis them isolate from each other and lacks attention to their integrated effects.The key to solving the problems is to further clarify the impact of ownership and internationalization on the relationship between government subsidies and innovation performance in the global competitive environment,and pay more attention to the changes in this relationship under different degrees of internationalization.Therefore,this paper explores the dynamic impact mechanism of internationalization and ownership on the relationship between government subsidies and innovation performance from the perspective of isomorphism.This paper takes 4343 operational data from 2011 to 2015 of 1165 high-tech manufacturing enterprises in Shanghai and Shenzhen A shares listed companies as the research object.In this paper,statistical analysis,correlation analysis and regression analysis of sample data were performed by Spss22.0 and Stata12.0 software.At the same time,in order to avoid the endogenous interference to the research results to the greatest extent,this paper also introduces two instrumental variables,and uses the 2SLS method to test the robustness of the model.The empirical results show that:(1)government subsidy has a positive effect on innovation performance of enterprises;(2)compared with state-owned enterprises,government subsidy has a greater effect on innovation performance of private enterprises;(3)with the increase of internationalization,the role of government subsidy in promoting innovation performance of enterprises is strengthened;(4)The ownership’s effect on the relationship between government subsidies and corporate innovation performance is affected by the degree of internationalization.when the degree of internationalization is low,the role of government subsidies in promoting innovation performance of private enterprises is greater;when the degree of internationalization is high,the incentive role of government subsidies in state-owned enterprises and private enterprises narrows the gap.The conclusion shows that the isomorphism behavior can effectively compensate the ownership disadvantage of state-owned enterprises in the process of internationalization,thus promoting the impact of government subsidies on technological innovation performance of enterprises.From the perspective of isomorphism,this paper reveals the positive impact of enterprise internationalization expansion on compensating ownership weakness,and also provides decision-making basis for emerging market subsidy policy makers and business managers in technological innovation strategy practice.