Financial Subsidy, Corporate Lifecycle and R&D Innovation

摘要

There is great uncertainty in the effect of financial subsidy on enterprise innovation, which is reflected in the difference in the effects during different lifecycle stages. Based on the theory of financial subsidy’s influence on enterprise innovation and the theory of enterprise lifecycle, this paper demonstrates the different effects of financial subsidy on R&D innovation when enterprises are in different lifecycle stages. Moreover, using the data of listed companies in the A-share market of China from 2013 to 2017, the paper finds that there are significant differences in the impact of financial subsidy on enterprise innovation through the fixed effect model and hierarchical multiple regression. Therefore, financial subsidy for enterprise innovation is important and should be differentiated to different life cycle enterprises.