HOW FUNDING STRUCTURE AFFECTS EFFICIENCY of R&D INVESTMENT by LARGE-AND MEDIUM-SIZED INDUSTRIAL FIRMS in China? EVIDENCE from PROVINCE-LEVEL PANEL DATA

Yixiao Zhou; Runyang Zhang; Ligang Song

doi:10.1142/S0217590817450084

HOW FUNDING STRUCTURE AFFECTS EFFICIENCY of R&D INVESTMENT by LARGE-AND MEDIUM-SIZED INDUSTRIAL FIRMS in China? EVIDENCE from PROVINCE-LEVEL PANEL DATA

Yixiao Zhou^*, Runyang Zhang, Ligang Song

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

This study explores the efficiencies of firm's R&D investment depending on the degree of reliance on government funding relative to firms' private funding. Stochastic frontier analysis is applied on a sample of 30 provinces with data on R&D inputs and innovation outputs by all large-and medium-sized industrial firms in these provinces from 2000 to 2013. It is found that R&D investment financed by firms' private funding is more efficient than that by government funding in generating new products, whereas R&D investment financed by government funding is more efficient than that by firms' private funding in producing new patents.

Original language	English
Pages (from-to)	921-938
Number of pages	18
Journal	Singapore Economic Review
Volume	64
Issue number	4
DOIs	https://doi.org/10.1142/S0217590817450084
Publication status	Published - 1 Sept 2019

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title = "HOW FUNDING STRUCTURE AFFECTS EFFICIENCY of R&D INVESTMENT by LARGE-AND MEDIUM-SIZED INDUSTRIAL FIRMS in China? EVIDENCE from PROVINCE-LEVEL PANEL DATA",

abstract = "This study explores the efficiencies of firm's R&D investment depending on the degree of reliance on government funding relative to firms' private funding. Stochastic frontier analysis is applied on a sample of 30 provinces with data on R&D inputs and innovation outputs by all large-and medium-sized industrial firms in these provinces from 2000 to 2013. It is found that R&D investment financed by firms' private funding is more efficient than that by government funding in generating new products, whereas R&D investment financed by government funding is more efficient than that by firms' private funding in producing new patents.",

keywords = "China, R&D investment, funding structure, innovation output, stochastic frontier analysis",

author = "Yixiao Zhou and Runyang Zhang and Ligang Song",

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AU - Zhang, Runyang

AU - Song, Ligang

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AB - This study explores the efficiencies of firm's R&D investment depending on the degree of reliance on government funding relative to firms' private funding. Stochastic frontier analysis is applied on a sample of 30 provinces with data on R&D inputs and innovation outputs by all large-and medium-sized industrial firms in these provinces from 2000 to 2013. It is found that R&D investment financed by firms' private funding is more efficient than that by government funding in generating new products, whereas R&D investment financed by government funding is more efficient than that by firms' private funding in producing new patents.

KW - China

KW - R&D investment

KW - funding structure

KW - innovation output

KW - stochastic frontier analysis

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JO - Singapore Economic Review

JF - Singapore Economic Review

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HOW FUNDING STRUCTURE AFFECTS EFFICIENCY of R&D INVESTMENT by LARGE-AND MEDIUM-SIZED INDUSTRIAL FIRMS in China? EVIDENCE from PROVINCE-LEVEL PANEL DATA

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