The Comparison And Evaluation Of China's Regional Technology Innovation Subsidy Policy:Theory And Evidence

Innovation Theory was put forward by Schumpeter a century ago and it is still active today.However,the spillover effect leads to the positive externality of innovation,which,along with the imperfect property system,triggers the market failure.The government hopes to correct the market failure by introducing a series of innovative subsidy policies.Since the effectiveness of these policies and whether they play a role in different regions are very important to the policy making process and the makers,the evaluation of policy performance seems necessary.Based on the firm list supported by High-Tech Industry Torch Program,this paper employs PSM,DID and OLS models to analyze the efficiency and mechanism of the policies.The results show that Torch Program encourages firms to increase the investment of R&D and the output of innovation results,thereby increasing the income and profit levels.However,it is found that a significant increase is inevitable in the innovation output whenever more funds are invested,and the efficiency of the policy does not get a good reflection in the short term.In addition,this paper also takes the Tech-Giant project of Shanghai Pudong district as an example to evaluate the performance of local subsidy policies.This paper suggests that local funds projects with good governance may promote the innovation performance of firms,especially in those regions seeking for structural adjustments and technology upgrading.