Sign in to use this feature.

Years

Between: -

Subjects

remove_circle_outline
remove_circle_outline
remove_circle_outline
remove_circle_outline
remove_circle_outline
remove_circle_outline
remove_circle_outline
remove_circle_outline
remove_circle_outline

Journals

Article Types

Countries / Regions

Search Results (116)

Search Parameters:
Keywords = R&D subsidy

Order results
Result details
Results per page
Select all
Export citation of selected articles as:
20 pages, 696 KB  
Article
TMT Diversity and the Financial Performance of Listed Chinese Companies: Three-Way Interaction Analysis of Innovativeness and Government R&D Subsidies
by Yu Jin Chang, Tin Myat Noe Wai and Jae Wook Yoo
Systems 2025, 13(10), 842; https://doi.org/10.3390/systems13100842 - 25 Sep 2025
Viewed by 310
Abstract
This study investigates how the functional diversity of top management teams (TMTs) affects the financial performance of A-share Chinese companies. To this end, we examine the interaction effects of TMT diversity with organizational innovativeness and government institutional support. Grounded in upper echelons theory, [...] Read more.
This study investigates how the functional diversity of top management teams (TMTs) affects the financial performance of A-share Chinese companies. To this end, we examine the interaction effects of TMT diversity with organizational innovativeness and government institutional support. Grounded in upper echelons theory, absorptive capacity theory, and institutional theory, this study uses hierarchical multiple regression to analyze data from 396 firms listed on the Shanghai and Shenzhen stock exchanges between 2022 and 2023. The results indicate that TMT functional diversity has a statistically significant positive effect on corporate financial performance, with organizational innovativeness positively moderating this relationship. This moderating effect is further strengthened by high government subsidies for research and development, confirming a three-way interaction effect among these three variables. The findings suggest that TMT diversity improves financial outcomes when firms have both robust internal innovation and external institutional support. By confirming the strategic significance of TMT composition in China and elucidating the effect of government subsidies, this study contributes both practically and theoretically to the strategic management literature on emerging markets. The findings clarify the implications of the contingent conditions under which TMT diversity translates into superior organizational performance. Full article
(This article belongs to the Special Issue Strategic Management Towards Organisational Resilience)
Show Figures

Figure 1

17 pages, 5872 KB  
Article
Characterization of Particulate Matter in Indoor Air from Cooking Activities in Rural Indonesian Households
by Muhammad Amin, Vera Surtia Bachtiar, Zarah Arwieny Hanami and Muralia Hustim
Atmosphere 2025, 16(10), 1124; https://doi.org/10.3390/atmos16101124 - 25 Sep 2025
Viewed by 324
Abstract
Indoor air pollution remains a critical health issue in the rural areas of low- and middle-income countries like Indonesia, where solid fuels are commonly used for cooking. This study assessed real-time indoor particulate matter (PM) concentrations in three rural households in Jorong V [...] Read more.
Indoor air pollution remains a critical health issue in the rural areas of low- and middle-income countries like Indonesia, where solid fuels are commonly used for cooking. This study assessed real-time indoor particulate matter (PM) concentrations in three rural households in Jorong V Botung, West Sumatra, using PurpleAir low-cost sensors (PurpleAir Inc., Draper, UT, USA). Mass concentrations of PM1, PM2.5, and PM10, along with size-segregated number concentrations (0.3–10 µm), were monitored continuously over six days (30 March–4 April 2024) during the Eid al-Fitr holiday, which involves extensive cooking activities. PM2.5 concentrations frequently exceeded 200 µg/m3, with a peak of 249.9 µg/m3 recorded during morning cooking hours. The smallest particle size (0.3–0.5 µm) dominated number concentrations, reaching up to 17,098 particles/dL, while larger particle levels were significantly lower. Strong positive correlations (r > 0.95) were observed among PM1, PM2.5, PM10 and AQI, indicating that cooking emissions substantially contributed to indoor PM levels. The findings highlight the need for targeted interventions, including clean fuel subsidies, improved ventilation, and public awareness efforts. This study contributes critical data on indoor air quality in rural Indonesia and supports broader initiatives to reduce exposure to household air pollution in Southeast Asia. Full article
(This article belongs to the Special Issue Enhancing Indoor Air Quality: Monitoring, Analysis and Assessment)
Show Figures

Figure 1

22 pages, 804 KB  
Article
Greening Through Recognition: Unveiling the Mechanisms of China’s High-Tech Enterprise Identification Policy on Sustainable Innovation
by Daleng Xin, Wenying Liu, Zhonghe Wang and Kehui Wang
Sustainability 2025, 17(17), 7896; https://doi.org/10.3390/su17177896 - 2 Sep 2025
Viewed by 696
Abstract
This study examines whether China’s high-tech enterprise identification policy promotes corporate sustainable innovation. Using panel data from Chinese listed firms on the Shanghai and Shenzhen stock exchanges between 2008 and 2022, we adopt a time-varying difference-in-differences (DID) model to evaluate the policy’s effectiveness [...] Read more.
This study examines whether China’s high-tech enterprise identification policy promotes corporate sustainable innovation. Using panel data from Chinese listed firms on the Shanghai and Shenzhen stock exchanges between 2008 and 2022, we adopt a time-varying difference-in-differences (DID) model to evaluate the policy’s effectiveness and explore its underlying mechanisms. The results reveal that this certification policy significantly facilitates green innovation, and the findings remain robust across various checks, including alternative measurements, placebo tests, propensity score matching DID (PSM-DID), and the exclusion of digital transformation trend and confounding macro-level policies. Mechanism analysis shows that the policy influences green innovation by alleviating financing constraints, increasing access to government subsidies, facilitating the agglomeration of scientific and technological talent, and encouraging greater R&D investment. Heterogeneity analysis further indicates that the policy effect is more pronounced among non-state-owned enterprises, small-scale firms, capital-intensive businesses, those located in high-institutional-quality regions, and firms in China’s eastern provinces. Moreover, the positive impact is strongest for growth-stage firms. The policy has also been found to improve green innovation efficiency. These findings offer empirical insights for optimizing selective industrial policies to enhance sustainable innovation and support China’s dual-carbon goals. Full article
Show Figures

Figure 1

35 pages, 4640 KB  
Article
Electric Strategy: Evolutionary Game Analysis of Pricing Strategies for Battery-Swapping Electric Logistics Vehicles
by Guohao Li and Mengjie Wei
Sustainability 2025, 17(17), 7666; https://doi.org/10.3390/su17177666 - 25 Aug 2025
Viewed by 810
Abstract
Driven by the urgent need to decarbonize the logistics sector—where conventional vehicles exhibit high energy consumption and emissions, posing significant environmental sustainability challenges—electrification represents a pivotal strategy for reducing emissions and achieving sustainable urban freight transport. Despite rising global electric vehicle sales, the [...] Read more.
Driven by the urgent need to decarbonize the logistics sector—where conventional vehicles exhibit high energy consumption and emissions, posing significant environmental sustainability challenges—electrification represents a pivotal strategy for reducing emissions and achieving sustainable urban freight transport. Despite rising global electric vehicle sales, the penetration rate of electric logistics vehicles (ELVs) remains comparatively low, impeding progress toward sustainable logistics objectives. Battery-swapping mode (BSM) has emerged as a potential solution to enhance operational efficiency and economic viability, thereby accelerating sustainable adoption. This model improves ELV operational efficiency through rapid battery swaps at centralized stations. This study constructs a tripartite evolutionary game model involving government, consumers, and BSM-ELV manufacturers to analyze market dynamics under diverse strategies. Key considerations include market scale, government environmental benefits, battery leasing/purchasing costs, lifecycle cost analysis (via discount rates), and resource efficiency (reserve battery ratio λ). MATLAB-2021b-based simulations predict participant strategy evolution paths. Findings reveal that market size and manufacturer expectations significantly influence governmental and manufacturing strategies. Crucially, incorporating discount rates demonstrates that battery leasing reduces consumer enterprises’ initial investment, enhancing economic sustainability and cash flow while offering superior total cost of ownership. Furthermore, gradual reduction of government subsidies effectively stimulates market self-regulation, incentivizes leasing adoption, and bolsters long-term economic/operational sustainability. Market feedback can guide policy adjustments toward fiscally sustainable support mechanisms. This study proposes the following management implications for advancing sustainable logistics: 1. Governments should phase out subsidies systematically to foster market resilience; 2. Manufacturers must invest in BSM R&D to improve efficiency and resource circularity; 3. Consumer enterprises can achieve economic benefits and emission reductions by adopting BSM-ELVs. Full article
Show Figures

Figure 1

26 pages, 2962 KB  
Article
Analysis of the Inverted “U” Relationship Between R&D Intensity and Green Innovation Performance: A Study Based on Listed Manufacturing Enterprises in China
by Ling Wang and Yuyang Si
Sustainability 2025, 17(17), 7625; https://doi.org/10.3390/su17177625 - 23 Aug 2025
Viewed by 1207
Abstract
Environmental innovation represents a pivotal pathway toward achieving energy efficiency improvements, carbon footprint reduction, and ecological sustainability enhancement. The research investigates Chinese manufacturing enterprises listed on domestic stock exchanges throughout 2011–2023. The analytical framework utilizes count-based regression methodologies to explore how R&D investment [...] Read more.
Environmental innovation represents a pivotal pathway toward achieving energy efficiency improvements, carbon footprint reduction, and ecological sustainability enhancement. The research investigates Chinese manufacturing enterprises listed on domestic stock exchanges throughout 2011–2023. The analytical framework utilizes count-based regression methodologies to explore how R&D investment intensity influences eco-innovation capabilities. Results demonstrate curvilinear associations linking R&D expenditure levels with both substantive and strategic environmental innovation achievements across industrial firms. This outcome successfully passed the turning-point test. Environmental oversight and financial incentives produce divergent moderating influences on innovation trajectories. Regulatory frameworks generate restrictive impacts through narrowing optimal investment ranges and dampening peak innovation outputs, whereas fiscal support mechanisms foster expansive effects via broadening resource availability and amplifying achievement levels. Cross-sectional examination uncovers substantial variations among ownership categories and geographical locations. State-owned enterprises demonstrate significantly lower optimal R&D intensity thresholds. Private firms require substantially elevated thresholds for optimal performance. Inland territories manifest unbalanced innovation dynamics. Coastal areas exhibit symmetric innovation patterns. The research enriches empirical knowledge in eco-innovation studies while offering context-specific strategic insights. The findings establish theoretical foundations and practical guidance for policy architects designing integrated environmental management systems that enhance innovation capabilities. Full article
(This article belongs to the Special Issue Advances in Low-Carbon Economy Towards Sustainability)
Show Figures

Figure 1

18 pages, 271 KB  
Article
The Impact of Government Subsidies on the Environmental Performance of Agricultural Enterprises
by Liangcan Liu, Xiang Li and Zhanjie Wang
Sustainability 2025, 17(16), 7275; https://doi.org/10.3390/su17167275 - 12 Aug 2025
Viewed by 595
Abstract
Facing the pressure of green transformation, studying the relationship between government subsidies and the environmental performance of agricultural enterprises has significant theoretical value and practical significance for achieving sustainable agricultural development. Based on the micro data of 283 A-share listed agricultural enterprises in [...] Read more.
Facing the pressure of green transformation, studying the relationship between government subsidies and the environmental performance of agricultural enterprises has significant theoretical value and practical significance for achieving sustainable agricultural development. Based on the micro data of 283 A-share listed agricultural enterprises in China from 2013 to 2023, this paper empirically analyzes the impact of government subsidies on the environmental performance of agricultural enterprises and its mechanism. The results show that there is an inverted U-shaped relationship between government subsidies and the environmental performance of agricultural enterprises, that is, when the government subsidies are within a certain scale, increasing government subsidies will have a positive impact on the environmental performance of agricultural enterprises. When the government subsidy reaches a certain scale, increasing the government subsidy will have a negative impact on the environmental performance of agricultural enterprises. External media attention (EMA) and internal control level (IC) play mediating roles in the impact of government subsidies on the environmental performance of agricultural enterprises. Heterogeneity analysis showed that for different types of subsidies, R&D subsidies and environmental protection subsidies had an inverted U-shaped impact on the environmental performance of agricultural enterprises. This study provides useful implications for improving methods of issuing government subsidies and enhancing the driving force of agricultural enterprises to carry out sustainable development actions. Full article
27 pages, 1570 KB  
Article
The Dual Impacting Effects of Government Environmental Policies and Corporate Pollution Levels on Corporate R&D Investment
by Xinglian Peng and Weihui Hu
Sustainability 2025, 17(13), 5791; https://doi.org/10.3390/su17135791 - 24 Jun 2025
Viewed by 515
Abstract
Against the backdrop of increasingly severe global environmental issues, the manner in which enterprises conduct R&D investment, influenced by both government environmental policies and their own pollution levels, has become a prominent research topic. This paper employs the bilateral random frontier model of [...] Read more.
Against the backdrop of increasingly severe global environmental issues, the manner in which enterprises conduct R&D investment, influenced by both government environmental policies and their own pollution levels, has become a prominent research topic. This paper employs the bilateral random frontier model of information game (SFA2tier) to analyze the influence levels and determining factors of government and market enterprises. The findings reveal that enterprises exert a stronger influence than the government, with the latter able to enhance R&D investment by 5.50% through its own influence. The disparity in influence levels between government and enterprises regarding R&D investment is significant and varies according to regional economic development levels and administrative hierarchies. Key determining factors include government subsidies, the nature of enterprise ownership, and enterprise size. The research results not only enrich relevant theories concerning the relationship between environmental policies and enterprise R&D investment but also provide valuable insights for the government to formulate more effective environmental policies and for enterprises to develop R&D strategies. Full article
(This article belongs to the Section Economic and Business Aspects of Sustainability)
Show Figures

Figure 1

26 pages, 389 KB  
Article
From Greenwashing to Sustainability: The Mediating Effect of Green Innovation in the Agribusiness Sector on Financial Performance
by Zhongping Wang and Xiaoying Tian
Agriculture 2025, 15(12), 1316; https://doi.org/10.3390/agriculture15121316 - 19 Jun 2025
Cited by 1 | Viewed by 1446
Abstract
This study analyses the impact of agricultural greenwashing on financial performance via green innovation. To this end, it employs data from Chinese A-share agribusinesses from 2012 to 2022. The study indicates the following results: (1) the practice of greenwashing (ESG disclosure–performance gap, GW) [...] Read more.
This study analyses the impact of agricultural greenwashing on financial performance via green innovation. To this end, it employs data from Chinese A-share agribusinesses from 2012 to 2022. The study indicates the following results: (1) the practice of greenwashing (ESG disclosure–performance gap, GW) has a significant negative impact on ROA, particularly in non-state firms; (2) green innovation (patents, GI) partially mediates this relationship, with a percentage of 9.09%, as GW diverts research and development resources toward image management. Robustness checks are employed to confirm the results obtained using ROE and lagged models. Property rights moderate the effects: non-state firms are more adversely affected by innovation dependency, while state firms are protected by policies. The “double-edged” mechanism elucidates GW’s short-term legitimacy gains in contrast to long-term innovation suppression and financial decline. The report calls for the establishment of standardised ESG metrics (for example, the disclosure of pesticide residue) and targeted green incentives (for example, SME R&D subsidies) to be aligned with UN SDGs 9.4 (green tech) and 12.6 (responsible production). The present study offers insights into the governance of environmental, social, and governance (ESG) matters within the context of agriculture in China. Full article
(This article belongs to the Section Agricultural Economics, Policies and Rural Management)
Show Figures

Figure 1

21 pages, 946 KB  
Article
Configuring Technological Innovation and Resource Synergies for Performance in New Energy Vehicle Enterprises: A Path Analysis Using Empirical and Comparative Methods
by Yunqing Liu, Ziqi Guo and Qianwen He
Sustainability 2025, 17(11), 5196; https://doi.org/10.3390/su17115196 - 5 Jun 2025
Cited by 1 | Viewed by 732
Abstract
In the fast-growing new energy vehicle (NEV) industry, selecting an appropriate technological innovation strategy is vital for enterprises to achieve a competitive market position while effectively coordinating their resources to align with their technical capabilities. This paper integrates ambidextrous innovation theory and the [...] Read more.
In the fast-growing new energy vehicle (NEV) industry, selecting an appropriate technological innovation strategy is vital for enterprises to achieve a competitive market position while effectively coordinating their resources to align with their technical capabilities. This paper integrates ambidextrous innovation theory and the resource-based view to propose a configurational model that examines how the synergy between technological innovation and resources influences NEV firm performance. Using regression analysis and qualitative comparative analysis (QCA) for 52 listed Chinese NEV companies, this study uncovered multiple growth paths and mechanisms. The findings include the following: (1) No single factor was a necessary condition for performance, but effective combinations of innovation strategies and resource elements led to multiple success paths. (2) Government subsidies and R&D investment emerged as key drivers of performance. (3) Four distinct configuration paths were identified, with variations across firms with different resource bases. (4) In response to reduced government subsidies, NEV firms must shift from policy-driven strategies to resource- and market-driven innovation approaches. These insights provide strategic guidance for NEV enterprises in selecting innovation strategies suited to their unique resource bases in the evolving post-subsidy market environment. Full article
Show Figures

Figure 1

25 pages, 552 KB  
Article
Going Green on the Government’s Dime: Unpacking the Subsidy Boost in Family Firms
by Xiaoqing Dong, Guangshun Cheng and Yuan Ren
Sustainability 2025, 17(10), 4547; https://doi.org/10.3390/su17104547 - 16 May 2025
Viewed by 860
Abstract
Family businesses play a vital role in the global economy as an organizational form that has evolved over time. However, Chinese family firms generally suffer from insufficient investment in research and development. Based on panel data of Chinese listed family firms from 2008 [...] Read more.
Family businesses play a vital role in the global economy as an organizational form that has evolved over time. However, Chinese family firms generally suffer from insufficient investment in research and development. Based on panel data of Chinese listed family firms from 2008 to 2022, this study investigates the impact of government green subsidies on family firms’ green innovation, along with the heterogeneity of such effects under different scenarios. The results show that government green subsidies significantly promote both strategic and substantive green innovation. The moderating effect analysis reveals that economic policy uncertainty weakens the baseline effect. Further analysis confirms that the positive impact of green subsidies is achieved by alleviating firms’ R&D funding constraints. Heterogeneity analysis indicates that green subsidies have a stronger effect on non-heavily polluting firms; they promote substantive green innovation more effectively in firms with low managerial green cognition, and strategic green innovation in those with high cognition. Additionally, the effects vary across the firm life cycle: green subsidies enhance strategic green innovation during the growth and maturity stages, and substantive green innovation during the growth and decline stages. This study reveals the mechanisms through which government green subsidies affect green innovation in family firms and offers policy implications for promoting sustainable development in the family business sector. Full article
Show Figures

Figure 1

23 pages, 654 KB  
Article
Exploring the Impact of Government Subsidies on R&D Cost Behavior in the Chinese New Energy Vehicles Industry
by Qianqian Zhang and Dong-Il Kim
Sustainability 2025, 17(10), 4510; https://doi.org/10.3390/su17104510 - 15 May 2025
Viewed by 918
Abstract
This study investigates whether government subsidies promote R&D cost stickiness in the new energy vehicle (NEV) industry in China—that is, whether public funding encourages firms to retain R&D resources even during periods of declining sales. While prior literature primarily explores the relationship between [...] Read more.
This study investigates whether government subsidies promote R&D cost stickiness in the new energy vehicle (NEV) industry in China—that is, whether public funding encourages firms to retain R&D resources even during periods of declining sales. While prior literature primarily explores the relationship between subsidies and R&D investment levels, it often overlooks firms’ financial position and dynamic cost behaviors. Given that R&D investment has high adjustment costs and is sensitive to cash flows, reductions in R&D spending during downturns may reflect managerial cost asymmetry rather than a crowding-out effect of subsidies. Moreover, government subsidies may serve as a signal of long-term market optimism, motivating managers to retain R&D resources during economic downturns. Using a panel dataset of 573 listed new energy vehicle (NEV) firms in China’s A-share market from 2007 to 2021, we construct a model based on the asymmetric cost behavior framework to empirically assess the impact of government subsidies on R&D cost stickiness. The results show that government subsidies significantly increase the degree of R&D cost stickiness. Serving as a signal of future market optimism, subsidies raise managerial expectations and incentivize decisions to retain R&D-related costs during economic downturns. This positive relationship is more pronounced in firms with high levels of green innovation, large-scale enterprises, and non-state-owned firms. These findings suggest that public funding alleviates managerial pressure to cut R&D expenses amid revenue declines, thereby supporting firms’ long-term innovation strategies. Our study contributes to the cost management literature by highlighting a novel channel through which subsidies influence managerial discretion under uncertainty. It also provides policy implications for the future phase-out of subsidies, emphasizing the need for complementary market mechanisms to sustain innovation investment, particularly for small, young, and financially constrained firms. Full article
Show Figures

Figure 1

26 pages, 3420 KB  
Article
Government Subsidies and Industrial Productivity in South Africa: A Focus on the Channels
by Brian Tavonga Mazorodze
Econometrics 2025, 13(2), 20; https://doi.org/10.3390/econometrics13020020 - 1 May 2025
Cited by 1 | Viewed by 3255
Abstract
This article estimates the impact of government subsidies on productivity growth in South Africa, joining the ongoing debate among economists regarding the effectiveness of subsidies as a driver of industrial productivity. While some argue that subsidies address market failures, facilitate R&D, and improve [...] Read more.
This article estimates the impact of government subsidies on productivity growth in South Africa, joining the ongoing debate among economists regarding the effectiveness of subsidies as a driver of industrial productivity. While some argue that subsidies address market failures, facilitate R&D, and improve efficiency, others criticise the attendant dependence, which reduces the incentive for industries to operate efficiently. This article contributes by examining the specific channels—efficiency and technical changes—through which subsidies affect productivity in South Africa. The analysis is based on a panel dataset comprising 64 three-digit industries observed between 1993 and 2023. Estimation is performed through an endogeneity robust panel stochastic frontier model, which treats subsidies as both an inefficiency driver and a technology variable. An additional estimation approach is proposed integrating the true fixed effects with a control function in a bid to account for both unobserved heterogeneity and idiosyncratic endogeneity. The results show that subsidies are detrimental to productivity, particularly through stifling technological progress. This result supports the view that subsidies reduce the incentive for beneficiaries to innovate. This evidence calls for a reevaluation and a possible restructuring of subsidy programmes in South Africa in a bid to mitigate their adverse effects on industrial productivity. Full article
Show Figures

Figure 1

29 pages, 5412 KB  
Article
Clean Heating Technology Diffusion with Government Departments’ and Commercial Banks’ Participation: An Evolutionary Game Analysis
by Ruguo Fan, Jianfeng Lu and Chaoping Zhu
Sustainability 2025, 17(8), 3413; https://doi.org/10.3390/su17083413 - 11 Apr 2025
Cited by 1 | Viewed by 519
Abstract
As a key driver of the green and low-carbon transformation of the energy sector, clean heating technology plays a crucial role in advancing sustainable energy development. However, the research and development (R&D) of clean heating technology is hindered by conflicting interests among key [...] Read more.
As a key driver of the green and low-carbon transformation of the energy sector, clean heating technology plays a crucial role in advancing sustainable energy development. However, the research and development (R&D) of clean heating technology is hindered by conflicting interests among key supply-side stakeholders, including heating enterprises, commercial banks, and government departments. These conflicts create challenges for promoting the diffusion of clean heating technology. To address this issue, this paper develops a tripartite evolutionary game model involving these stakeholders, with the aim of exploring strategies to facilitate clean heating technology diffusion from the supply side. Through mathematical modeling and numerical simulations, we examine how variables such as cost, subsidies, and penalties affect the strategic decisions of these participants. The results showusing that (1) the cost of clean heating technology R&D significantly influences commercial banks’ willingness to collaborate with heating enterprises; (2) increasing credit penalties for non-compliance and enhancing returns from clean heating technology can motivate heating enterprises to engage in technology R&D; (3) enhancing economic penalties and strengthening informal regulations can improve cooperation between commercial banks and heating enterprises; (4) moderate subsidies can positively influence the strategies adopted by commercial banks and heating enterprises. Based on these findings, we propose policy recommendations to promote clean heating technology diffusion from the supply side. This study offers both theoretical support and practical guidance for advancing clean heating technology diffusion, which is strategically important for sustainable energy development. Full article
(This article belongs to the Section Energy Sustainability)
Show Figures

Figure 1

24 pages, 703 KB  
Article
R&D Subsidies and Radical Innovation: Innovative Mindset and Competition Matter
by Xiaotong Huo, Shuyang Wang, Bowen Zheng and Xiaoyu Wu
Systems 2025, 13(4), 282; https://doi.org/10.3390/systems13040282 - 11 Apr 2025
Cited by 2 | Viewed by 2024
Abstract
With the increasing focus on R&D (research and development) subsidies of various researchers, there is growing interest in how these subsidies affect radical innovation. Based on the limited attention paid to this area in the existing literature, this paper investigates the impact of [...] Read more.
With the increasing focus on R&D (research and development) subsidies of various researchers, there is growing interest in how these subsidies affect radical innovation. Based on the limited attention paid to this area in the existing literature, this paper investigates the impact of R&D subsidies on radical innovation. Using a sample of Chinese listed firms, we investigate how innovation orientation and competitive intensity moderate this relationship. By incorporating concepts from Path Dependence Theory, we propose that R&D subsidies alter firms’ assessment of the value and risk associated with investments in radical innovation, influencing their innovation strategies. Subsidies may increase the attractiveness of incremental innovations, which have lower volatility and faster returns, compared to radical innovations, which inherently involve higher risk and uncertainty. Based on the results of our analysis, we find that R&D subsidies negatively affect radical innovation, but firms with a stronger innovation orientation (which reflects their greater tolerance for risk) are less negatively affected. Conversely, an increase in the intensity of competition exacerbates the negative impact of subsidies because it induces firms to make safer incremental investments. The robustness analysis confirms that the main effects remain significant even when using alternative proxies for innovation. Our study sheds light on the mechanisms affecting the effectiveness of subsidies from the perspective of finance theory and highlights the conditions under which subsidies may unintentionally discourage radical innovation. Full article
Show Figures

Figure 1

24 pages, 5789 KB  
Article
Patent Openness Decisions and Investment Propensities of Frontier Enterprises in Asymmetric Competition
by Chen Liu, Daiqing Yan, Zihao Song, Gandang Shi, Wentao Zhan and Minghui Jiang
Systems 2025, 13(3), 146; https://doi.org/10.3390/systems13030146 - 21 Feb 2025
Cited by 1 | Viewed by 898
Abstract
The patent openness decisions of frontier enterprises and the consequent investment tendencies of laggard enterprises play a significant role in their profitability. Despite the benefits resulting from directly using open patents, in order to capture market share and surpass frontier enterprises, laggard enterprises [...] Read more.
The patent openness decisions of frontier enterprises and the consequent investment tendencies of laggard enterprises play a significant role in their profitability. Despite the benefits resulting from directly using open patents, in order to capture market share and surpass frontier enterprises, laggard enterprises must decide whether they are going to invest in R&D or expansion. In this context, based on evolutionary game theory and the operational behaviors of both frontier and laggard enterprises, this study constructed a model of enterprise revenue under asymmetric competition, exploring the impact of patent openness with and without government subsidies on enterprise revenue. This study discovered that: (1) when the industry scale is small, frontier enterprises gain significant social effects through patent openness, while laggard enterprises invest in expansion; (2) as the industry scale gradually expands, frontier enterprises tend to prefer not to open their patents, and laggard enterprises gradually shift from imitation to independent innovation when the return on R&D investment increases more than that on expansion investment; and (3) when the R&D costs of laggard enterprises are high, frontier enterprises usually choose not to open their patents, forcing laggard enterprises to turn to investment in expansion. This allows frontier enterprises to reduce the losses from patent openness while enjoying the benefits of reduced industry production costs. This study provides new perspectives on patent openness and investment tendencies with the help of an evolutionary game mechanism and offers managerial policy recommendations. Full article
Show Figures

Figure 1

Back to TopTop