STUDY ON THE IMPACT OF GOVERNMENT SUBSIDIES ON INNOVATION PERFORMANCE

摘要

R&D investment is essential for firms to get competitive advantages and achieve sustainable development. In order to encourage firms to actively invest in R&D and promote technological innovation, governments use national resources to subsidize firms. Therefore, government subsidies become an important factor affecting firms' innovation performance. Based on the data collected from the evaluation of enterprise technology center of Hubei province in 2014, this paper researches the impact of government subsidies on innovation performance using multiple linear regression analysis. The results indicate that government subsidies are negatively correlated with innovation performance, and have a negative moderating effect on the relationship between R&D expenditure investment and innovation performance. The results show that government subsidies are not well-used and are not as efficient as we expected. The efficiency of R&D activities is reduced probably because some of the investments are not from the companies. In addition, we examine the impacts of two kinds of government subsidies and the impacts of government subsidies in different industries. Finally, reasons of the empirical results are analyzed and some suggestions are given to improve the performance of government subsidies.