Incentive Effects and Influencing Factors of Government Funding on Corporate R&D Investment: A Case Study of Beijing
On the basis of the threshold regression model, this study empirically examines the incentive effects of R&D subsidy from the municipal government of Beijing on R&D investment of enterprises and analyzes the main factors that influence the effect. The results of empirical tests show that there is a significant threshold effect of government funding on corporate R&D investment, which is affected by the strength of funding, the size of enterprises, and the structure of property rights. For the purpose of stimulating corporate R&D investment, the strength of government R&D funding should be kept within 9% and the incentive effects are better for larger enterprises or state owned enterprises.