Government R&D Subsidies And State-owned Enterprise Innovation Output

The report of the 18th National Congress of the Communist Party of China clearly proposed the implementation of the innovation-driven development strategy,The report of the 19th National Congress of the Communist Party of China further takes the acceleration of the construction of an innovative country and emphasizes that "innovation is the primary driving force for development".In the new round of industrial revolution,the development of strategic emerging industries is a major strategy to seize the commanding heights of the new round of economic and technological development.Among them,technological innovation is the key.But the characteristics of technological innovation public goods and uncertainty may lead to "market failure".The government's guidance and incentives for technological innovation investment through financial funds are a common practice for countries to correct technological "market failures".In recent years,government research and development subsidies have attracted widespread attention and abroad as one of the important means to support strategic emerging industries.Under the basic economic system with public ownership as the main body and the common development of multiple ownership economies,state-owned enterprises as an important part of the national innovation system should also become the vanguard of the implementation of innovation-driven development strategies.In addition,there is an imbalance in the quantity and quality of innovation output of Chinese enterprises at this stage.Although the innovation capacity of Chinese companies seems to be among the best in the world in terms of the number of innovations,it is not the case in terms of the quality of innovation.This article uses the state-owned enterprises in China's strategic emerging industries from 2010 to 2017 as a research sample to study the impact of government R&D subsidies on the innovation output of state-owned enterprises.The research finds that:(1)Government R&D subsidies can produce "incentive effects" and "selection effects" on the innovation output of state-owned enterprises.The "incentive effect" is mainly reflected in the level that R&D subsidies can positively stimulate the innovation output of state-owned enterprises;the"selection effect" refers to the number of non-inventive patent applications has increased significantly,while the number of substantial invention patent applications has not been significantly affected by this.In addition,for sample companies that do not belong to special industries,this "selection effect" is more obvious,and under the environment of strong market competition and high level of intellectual property protection,the "selection effect"can be alleviated to a certain extent.(2)Different ways of granting R&D subsidies have different effects on the innovation output of state-owned enterprises.Compared with ex-ante project R&D subsidies,ex post incentive R&D subsidies not only have a positive impact on the overall number of patents,but also stimulate the increase in the number of invention patent applications.(3)Under the condition of official replacement,the "incentive effect" and "selection effect" of government R&D subsidies on the innovation output of state-owned enterprises will be further amplified.(4)At the end of this article,we analyze the impact of different types of innovation output on the value of the enterprise.It is found that substantial invention patent applications can increase the current and next market value of enterprises,while strategic innovation output cannot.Further,government R&D subsidies have promoted the current and next period of corporate value through substantial innovation output,but state-owned enterprises cannot.