Research On The Impact Of Government R&D Funding On Enterprises’ Technological Innovation Decision-making,Behavior And Performance

As the core process of technological innovation,research and development is the criticaldriving force for the improvement of enterprise innovation capability and also the foundation of economic and social development. It is one of the main objectives of national science and technology policy to correct market failures of R&D activities by taking advantage of government R&D funding.Specifically,R&D activities will face market failure because of it’s half-public products characteristics,which need to be corrected by the implementation of government R&D funding policy.Along with the increase of R&D investment in more and more countries and regions,the influence of government R&D funding on enterprise technologic innovation has obtained abundant academic and practical attention. Due to the lack of micro-level data,empirical research on the effect of government R&D funding on technological innovation mainly concentrates on industry level or regional level,and most studies focus on the impact of governments R&D funding on R&D investment or innovation performance of enterprises,only few studies concerns the effect of government R&D funding on technological innovation from multi-perspective.Moreover,a few empirical researches focused on micro-level adopted cross-sectional data,which can’t objectively reflect the actual effect of government R&D funding due to the time lag of R&D activities. To fill the gap in extant literatures,this dissertation illuminates the mechanism of government R&D funding’s influence on enterprises’ innovative decision-making,innovative behavior and innovative performance in sequence,and empirically tests the effects of government R&D funding on technological innovation according to different funding ways,different growth stages,different enterprises scale,different industry characteristics and the time lag effect,using the panel data of 2025 high-tech enterprises in Guangdong Province from year 2010 to 2014 based on PRM model,FE model and SYS-GMM estimation.This dissertation get a lot of significant conclusions based on the empirical research and hypothesis testing. Firstly,the empirical results indicate that government R&D funding improves enterprises’ willing to implement R&D activities and could guide enterprises commitment to develop common technology,and also motivates enterprise to cooperate with universities and public research institutes. Secondly, government R&D funding has a significant positive impact on enterprises’ R&D investment,which indicates government R&D funding having induced effects rather than crowding-out effects for enterprises’ overall R&D investment. Thirdly,the government R&D funding has a significant positive influence both on innovative technology performance and innovative market performance though the specific effect is different from each other. At the same time,this dissertation furtherly analyzes the different influence of direct and indirect government R&D funding on enterprises’ technological innovation and finds out that different government R&D funding has distinctive impact on enterprises’ technological innovation.Besides that,the empirical results suggest that the government R&D finding has contingent influences based on enterprise heterogeneities including stages of growth,firm scale and industries. Moreover,the empirical analysis of lag effects of government R&D funding on enterprises’ technological innovation shows that the causing coefficient of government R&D funding for enterprises’ innovation decision-making gets maximum in current year,the government R&D funding has lag effects on technologic innovation performance and the lag time is one year for direct funding and two years for indirect funding,and the government R&D funding for enterprises’ R&D investment does not have lag effectas taking endogeneity into consideration.The findings of this dissertation not only further our comprehension of the role that government plays in the promotion of enterprises technological innovation outcome in the perspective of innovaiton system theory,resource-based view and institutional embeddedness theory,but also provide theoretical foundation and empirical evidence for the government to formulate more effective science and technology policy to support R&D activities of erperprises.