Government Intervention, Financial Support, and Comprehensive Efficiency of Enterprise Independent Innovation: Empirical Analysis Based on the Data of Chinese Strategic Emerging Industries

Abstract EN

Government intervention and financial support are two major means to promote the independent innovation performance of enterprises in strategic emerging industries, and government intervention has induced crowding-out effects on financial support, which leads to the uncertainty of the dual incentive effect of government intervention and financial support on enterprises’ independent innovation.

The research object of this paper is 657 strategic emerging enterprises listed in Shanghai and Shenzhen.

We empirically studied the impact of government intervention and financial support on the comprehensive efficiency of independent innovation of strategic emerging enterprises.

The empirical study draws the following conclusions.

Firstly, the comprehensive efficiency of independent innovation of enterprises is in the trend of continuous improvement and technical efficiency and scale efficiency are also increasing, but the technical efficiency is lower than the scale efficiency, which shows that the improvement of independent innovation efficiency mainly depends on the expansion of innovation scale.

Secondly, both government intervention and financial support promote the comprehensive efficiency of independent innovation of strategic emerging industry enterprises, but the incentive effect of government intervention is more obvious.

Thirdly, there is an inverted U-shaped relationship between government intervention and the comprehensive efficiency of independent innovation.

Fourthly, the regression coefficient of the interaction between government intervention and financial support and the comprehensive efficiency of enterprise independent innovation is negative, which indicates that government intervention has an inhibitory effect on the effect of financial support on the overall efficiency of enterprise independent innovation.

Finally, we put forward countermeasures and suggestions.