The Effectiveness of Government Subsidy upon Innovation Investment Empirical Evidence from GEM listed Companies
Yuan Zeming;Guo Jingxian;
Based on the GEM listed companies from 2010 to 2013, this paper studies the impact of government subsidy on innovation investment, using robust clustering standard deviation method. The result shows that government subsidy has significant incentive effect on innovation investment for the total sample. There is significant positive correlation between government subsidy and innovation investment for samples of under-investment of innovation, but this is no significant for samples of over-investment of innovation. This paper evaluates the effectiveness of the policy on government subsidy by the inefficiency of innovation investment. According to the research conclusion, we put forward reasonable suggestions for government subsidy policy.