Query Result Set
Skip Navigation Links
   ActiveUsers:441Hits:20749840Skip Navigation Links
Show My Basket
Contact Us
IDSA Web Site
Ask Us
Today's News
HelpExpand Help
Advanced search

  Hide Options
Sort Order Items / Page
HOWELL, ANTHONY (1) answer(s).
 
SrlItem
1
ID:   159053


Picking ‘winners' in China: do subsidies matter for indigenous innovation and firm productivity? / Howell, Anthony   Journal Article
Howell, Anthony Journal Article
0 Rating(s) & 0 Review(s)
Summary/Abstract This paper examines the effects of public subsidies across several dimensions of the innovation process and the implications for productivity. As an identification strategy, panel data is used to estimate a structural innovation model that controls for unobserved heterogeneity combined with matching techniques that help ensure comparability between subsidized and non-subsidized firms. The findings reveal that public subsidies reduce firms' economic performance in lower and higher technology industries despite promoting indigenous innovation in the higher technology industries. Policymakers may tolerate lower average efficiency if they expect that some of the state-backed firms will eventually become successful innovators that go on to generate significantly large social welfare payoffs. Although the findings do not support such an expectation, thus bringing into question whether the social payoff from China's so-called picking ‘winners' strategy justifies the cost.
Key Words R&D  China  Innovation  TFP  Picking Winners  State Subsidies 
        Export Export