An Empirical Study Of The Effects Of Government Innovation Programs

Today,in the 21st century,economic globalization has become a normal development state.Under such a background,accelerating the construction of an innovative country has become one of China's important tasks.The 19th National Congress emphasized that "Innovation is the first driving force for development and the strategic support for building a modem economic system." The innovation-driven development strategy is a major decision made by the party and the central government in comprehensive domestic and international situations,based on Chinese national conditions and overall development.Technological and independent innovation are the only way for China to climb the world's technological peaks.In the past year,many innovative projects and industries in China have entered a new stage.Chinese manufacturing industry has developed rapidly.For example,high-speed rail,aerospace,and nuclear power plants are gradually moving out of the country.Chinese nuclear power plants have even begun to export to foreign countries.The number is second to none in the international arena.But we should admit that we still have a long way to be a truly innovative country.According to statistics,the rate of innovative contribution to national economic development is above 70%,the rate of R&D investment costs account for more than 2%of GDP,and technology dependence is less than 20%.It can be regarded as an innovative country which is recognized internationally.In order to effectively promote innovation capabilities,appropriate interventions in government policies are indispensable,such as various forms of subsidies that the government has now adopted.However,the government's subsidies can play a significant role in the long-term development of enterprises.The survival time and performance level of enterprises can be greatly affected.This is the main problem that this paper wants to study and analyze.The existing research has analyzed and explored the impact of government innovation fund subsidies on the survival time and performance of enterprises from different perspectives.Research from a resource perspective shows that government innovation fund subsidies can have a direct impact on enterprises.The inflow of subsidies increases the available funds for small and medium-sized enterprises.Enterprises can introduce more talents,invest in R&D innovation,expand markets,and improve corporate performance and survival time.Research from the perspective of the system shows that a conclusion.The government innovative fund subsidies can can promote the performance improvement and survival time of small and medium-sized enterprises through the legality enhancement effect.And the enhancement is brought by authoritative institutions.The empirical research on the current stage from the perspective of the system has been quite abundant,but the research from the perspective of resources is still very limited,and few articles take into account both business performance and survival time.This paper studies the follow-up impact of government subsidies on enterprises.analyze and demonstrate the conclusion by empirical and theoretical methods.Then we divide the follow-up impact into two aspects:the survival time of enterprises and enterprise performance.We mainly analyze the role of government subsidies for both.This article uses the data of the China Industrial Enterprise Database 2000-2017,the National Intellectual Property Patent Database and the Innovation Fund to fund the enterprise database.The propensity score matching method,the double difference method and the cloglog survival analysis model are used to empirically analyze.They can analyze the impact and affection of government innovation fund subsidies on the subsequent development of enterprises.The propensity score matching method can select a control group for the subsidized enterprises.The unsubsidized enterprises are consistent with the subsidized enterprises in the remaining factors which is affecting the subsequent development of the enterprise.The survival analysis method and double difference were used to empirically analyze the survival time and enterprise performance.The KM survival curve was drawn to visually observe the difference in survival duration between subsidized and unsubsidized enterprises.The results show that the survival curve of enterprises subsidized by government innovation funds is above the unsubsidized enterprises,that that is,the subsidized enterprises have higher survival probability.The Cloglog model model is used to observe whether there is a positive correlation between two kinds of enterprises.The relationship and the double difference method prove that the innovation performance of the subsidized enterprises has indeed been improved to some extent.This paper helps small and medium sized enterprises and policy makers to understand the impact and mechanism better.The impact and mechanism is that government innovation fund subsidies play the role of the enterprises.The paper can help policy makers to formulate subsidy policies,clarify government subsidies,and optimize government innovation.Moreover it can provide practical insights for small and medium-sized innovative enterprises to apply for government subsidies.Then the enterprises can use the subsidies more useful.