Government Subsidies Performance Of Strategic Emerging Industries

Strategic emerging industries are innovation-driven. They meet the demand of China’s transformation of economic growth mode in the characteristic of efficient use of resources, high-tech and high value-added. In recent years, China launched a series of related policies and rules to formulate the growth goals of strategic emerging industries and promote the growth of strategic emerging industries. With those support policies there are a large number of government subsidies.Based on the consideration of the growth stage of domestic strategic emerging industries, economic performance of the government subsidies is the major analysis target in this paper. The two dimensions of the enterprise level and industry level are settled as empirical subject and the performance appraisal is designed and implemented as the follows:First, at the enterprise level, the control variables of firm size, asset-liability ratio are used to examine the contribution of the government subsidies for R&D investment, R&D results, as well as its own benefit. Secondly, at the industry level, the control of the industry scale, technology and human resource are used to examine the direct effect of government subsidies for strategic emerging industry output growth and the level of new products. Finally, in the transmission mechanism, examine the effect of the industry R&D investment, patent output and benefit on the industry output growth and the level of new products, which can be linked with the enterprise level conclusions to reveal the performance transmission mechanism of subsidies from the corporate level to the industry level.The empirical analysis of this paper shows the following conclusions:Subsidies of domestic strategic emerging industries at this stage have a certain amount of performance:Domestic subsidies of strategic emerging industries have a significant role in promoting at the enterprise level, both for the corporate R&D investment, patent output even benefit. And when the proportion of industrial output value of new products is chose as an indicator of performance, the transmission mechanism in the path of patent output as the indicator is smooth. However, subsidies of domestic strategic emerging industry at this stage are also low-performance within a certain ranges:Government subsidies has not significant and clear role for both the relative growth rate of the industry or the proportion of industrial output value of new products. When relative growth rate of the industry is chose as an indicator of performance, whether R&D investment, patent output or benefit are unable to produce a significant effect on it. When the proportion of industrial output value of new products is chose as an indicator of performance, the second stages of the transmission mechanism in the two paths of R&D investment and benefit as the indicators are not smooth. Through the above conclusion, some expansion analysis is given combining with the restructuring issues of the photovoltaic industry and some corresponding policy recommendations are provided from the three aspects of model design of subsidy, follow-up surveillance for Subsidies and related supporting regulations.