The Effect Of Government Subsidies On Patent Applications: Mediation Effect And Moderating Effect

Chinese government had enacted a number of measures to promote enterprises patent application, this received considerable attention in recent years, scholars research their relationship from different perspectives. Due to the uniqueness of the market in China, there’re some difference between the study of patent application from China and western countries. Base on macro-level scholars have paid more attention to research the relationships between government subsidies and patent applications, but the conclusions have some difference. This study base on firm- level, research the relationship between subsidies and patent application, and the mediation effect of R&D investment in this process. Moreover, competitive strategy also impacts patent application.Therefore, this article will further analysis the moderating role of competitive strategy. The sample include 104 listed enterprises which have 8 consecutive years’(2002-2010) patent application data and financial index data, using SPSS20.1, EVIEWS8.0, MPLUS 7.0 make regression analysis on unbalance panel data, the main conclusions are as follows: there is a significant positive relationship between the government subsidis and the patent application. R&D investment has played an intermediary role in the government subsidies and patent applications. Discrepancy strategy plays a regulatory role in government subsidies and patent application, and also effect government subsidies – R&D investment – patent application’s intermediary model.In theory, the result of this paper extend the field of patent applications, base on firm- level clarify the role of government subsidis works on patent applications, and the regulating effect of competitive strategy. promote the further development of patent application theory. In practice, the result of this paper could guide the allocation of government subsidies, Incentive for innovation and patent applications.