Next HUOS seminar, December 14that 1100-1230, room 4128
Professor Di Guo
Title of Talk: Governance and Effects of Public R&D Subsidies: An Evidence from China
We examinewhether and howgovernment-subsidized R&D programs affect theproductivity of firms.On the basis ofa paneldataset of Chinese firms, weestimateex-ante and ex-post effects of the Innovation Fund for Small and Medium Technology-based Firm (Innofund), one of the largest Chinese government programs that support corporate R&D activities. Furthermore, a quasi-experiment environment is used toinvestigate how the governance of Innofund influences the aforementioned effects. We find that Innofund chooses to support productive firms, and the productivity improvements of these firms are further magnified after they win government support. The ex-post effects of Innofund are stronger when the governance of the government program is more decentralized than before.Identification problemsare addressed with various approaches.