Government support, international trade and firm's R&D investment: Evidence from Chinese high‐tech industries

Purpose – Innovation is becoming the key approach for firms to achieve sustainable competitive advantages. The purpose of this paper is to examine whether government public RD this paper also investigates the impact of international trade on firms' private RDI in China.Design/methodology/approach – The paper empirically tests the government support and international trade on firms' private RDI. An online survey was conducted as well as collaborated with the Department of Science and Technology of Zhejiang Province in 2006. The sample was obtained from more than 1,000 firms in high‐tech industries in Zhejiang province, and covers the year 2003‐2005. Linear regression was used for the firm‐level estimations.Findings – The empirical results indicate that public R&D subsidies and disembodied technology imports positively and significantly impact on firms' private RDI, while non‐high‐tech product exports and embodied ...

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