4.1.2. Increasing R&D Capital Investment

Column (2) in Table 10 indicates that the coefficient of sub was 0.0688, which was significant at the 5% level, indicating that government subsidies play an important role in promoting the enterprises' R&D capital investment. Many studies have proven that R&D capital investment can significantly improve the enterprises' innovation output [40]. Therefore, government subsidies promote technological innovation by increasing enterprise R&D capital investment.
