Government efficiency and enterprise innovation – evidence from China
- Resource Type
- Article
- Authors
- Chen Han; Yoon Soon Suk
- Source
- ASIAN JOURNAL OF TECHNOLOGY INNOVATION, 27(3), pp.280-300 Dec, 2019
- Subject
- 과학기술학
- Language
- English
- ISSN
- 1976-1597
We use Chinese listed firms from 2010 to 2016 to explore the incentive mechanism and the differential effect of 27 provincial government efficiency on enterprise innovation. We find that the government efficiency positively affects the innovation investment and output. The government efficiency helps reduce rent-seeking opportunities; hence, rent-seeking firms react more positively to government efficiency. We also find that high-tech industry membership and state-ownership affect the incentive mechanism of government efficiency for enterprise innovation.