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Academic Journal of Business & Management, 2020, 2(7); doi: 10.25236/AJBM.2020.020713.

Research on the Effect of Government R&D Subsidies on Innovation Performance and Behavior of Enterprises


Dandan Li

Corresponding Author:
Dandan Li

Business School, Northwest University of Political Science and Law, Xi'an 710122, China


Based on the two aspects of government R&D subsidies on innovation performance and behavior,this paper analyzes the influence mechanism of R&D subsidies on enterprise innovation and illustrates the different mechanism of incentive effect, crowding out and signal effect, and analyzes the enterprise scale and ownership to influence the effectiveness of the government R&D subsidies. It is found that government R&D subsidies can promote and inhibit the innovation activities of enterprises,but the influence mechanisms are different. Meanwhile, differences in enterprise size and ownership nature will affect the effect of government R&D subsidies. Therefore, in order to reasonably plan the allocation of government R&D subsidies and maximize the effect , government can formulate targeted funding methods from the aspects of setting reasonable subsidy intensity and attaching importance to innovation behaviors of non-state-owned enterprises.


government R&D subsidies; innovation performance; innovation behavior; impact mechanism; influencing factor

Cite This Paper

Dandan Li. Research on the Effect of Government R&D Subsidies on Innovation Performance and Behavior of Enterprises Academic Journal of Business & Management (2020) Vol. 2, Issue 7: 117-126. https://doi.org/10.25236/AJBM.2020.020713.


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