Government Subsidies and Enterprise Innovation: Evidence from China's Photovoltaic Industry

Government subsidies (GSs) have triggered a remarkable increase in the production capacity of photovoltaic (PV) electricity in China. However, the lack of core technologies has limited PV enterprises’ competitiveness in the global market. This research investigates the impacts of R&D subsidies a...

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Main Authors: Cailou Jiang, Dehai Liu, Qin Zhu, Lu Wang
Format: Article
Language:English
Published: Wiley 2021-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2021/5548809
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author Cailou Jiang
Dehai Liu
Qin Zhu
Lu Wang
author_facet Cailou Jiang
Dehai Liu
Qin Zhu
Lu Wang
author_sort Cailou Jiang
collection DOAJ
description Government subsidies (GSs) have triggered a remarkable increase in the production capacity of photovoltaic (PV) electricity in China. However, the lack of core technologies has limited PV enterprises’ competitiveness in the global market. This research investigates the impacts of R&D subsidies and non-R&D subsidies on the innovation in PV enterprises. With samples of Chinese listed PV enterprises from 2010 to 2019, this study finds R&D subsidies exert a notable positive impact on the innovation in PV enterprises. In small and medium enterprises (SMEs) and enterprises without state-owned shares, both R&D subsidies and non-R&D subsidies have positive impacts on the innovation. Considering the policy orientation, R&D subsidies granted under demand-orientation policies promote the innovation in PV enterprises. The government should increase the amount of R&D subsidies, optimize the R&D subsidies’ evaluation mechanism, and reasonably grant R&D subsidies from the demand side.
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spelling doaj-art-30b60eea1fd54d1097029c0f5ddf4f3a2025-08-20T02:38:56ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2021-01-01202110.1155/2021/55488095548809Government Subsidies and Enterprise Innovation: Evidence from China's Photovoltaic IndustryCailou Jiang0Dehai Liu1Qin Zhu2Lu Wang3Development Institute of Jiangbei New Area, Nanjing University of Information Science & Technology, Nanjing 210044, ChinaDevelopment Institute of Jiangbei New Area, Nanjing University of Information Science & Technology, Nanjing 210044, ChinaInstitute for the History of Science and Technology, Nanjing University of Information Science &Technology, Nanjing 210044, ChinaFaculty of Business, Economics & Law, The University of Queensland, Brisbane, Queensland 4072, AustraliaGovernment subsidies (GSs) have triggered a remarkable increase in the production capacity of photovoltaic (PV) electricity in China. However, the lack of core technologies has limited PV enterprises’ competitiveness in the global market. This research investigates the impacts of R&D subsidies and non-R&D subsidies on the innovation in PV enterprises. With samples of Chinese listed PV enterprises from 2010 to 2019, this study finds R&D subsidies exert a notable positive impact on the innovation in PV enterprises. In small and medium enterprises (SMEs) and enterprises without state-owned shares, both R&D subsidies and non-R&D subsidies have positive impacts on the innovation. Considering the policy orientation, R&D subsidies granted under demand-orientation policies promote the innovation in PV enterprises. The government should increase the amount of R&D subsidies, optimize the R&D subsidies’ evaluation mechanism, and reasonably grant R&D subsidies from the demand side.http://dx.doi.org/10.1155/2021/5548809
spellingShingle Cailou Jiang
Dehai Liu
Qin Zhu
Lu Wang
Government Subsidies and Enterprise Innovation: Evidence from China's Photovoltaic Industry
Discrete Dynamics in Nature and Society
title Government Subsidies and Enterprise Innovation: Evidence from China's Photovoltaic Industry
title_full Government Subsidies and Enterprise Innovation: Evidence from China's Photovoltaic Industry
title_fullStr Government Subsidies and Enterprise Innovation: Evidence from China's Photovoltaic Industry
title_full_unstemmed Government Subsidies and Enterprise Innovation: Evidence from China's Photovoltaic Industry
title_short Government Subsidies and Enterprise Innovation: Evidence from China's Photovoltaic Industry
title_sort government subsidies and enterprise innovation evidence from china s photovoltaic industry
url http://dx.doi.org/10.1155/2021/5548809
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AT luwang governmentsubsidiesandenterpriseinnovationevidencefromchinasphotovoltaicindustry