Impact of R&D innovation and political background on corporate growth: A study based on private listed companies in China.

Based on a review of related concepts and theories this study investigates the different impacts of research and development (R&D) innovation and political background on corporate growth in a particular context. Unlike other studies, we integrate these two factors. We empirically analyze 6079 sets of data from 1292 A-share private manufacturing enterprises in Shanghai and Shenzhen from 2012 to 2019. The results show that these factors directly impact corporate growth and have heterogeneous effects at different enterprise growth levels. We find the effect of R&D innovation on corporate growth is more pronounced for young firms. These findings highlight the need for firms to adjust their investments in R&D innovation and political backgrounds at different stages of development to adapt to different markets and political environments.

How innovation funding leads enterprises to engage in research and development: Small and medium enterprises' perspective.

Technology-based small and medium enterprises (SMEs) are the driving force behind China's economic and technological development. However, these enterprises often face challenges in financing their research and development (R&D) activities due to limited financing opportunities. Previous research has primarily focused on the resource attributes of government innovation subsidies, which serve as a crucial funding source for these SMEs. This paper aims to explore the impact of government innovation subsidies on firms from a novel perspective, considering the signaling characteristics of these subsidies. The theoretical foundation of this study lies in the asymmetric information theory and the signaling mechanism through which government subsidies send signals about enterprises. The study uses enterprise data from 2012 to 2019 to investigate the effect of government subsidies on the R&D investment of enterprises listed on the SMEs Board in Chinese stock market. The results reveal a significantly positive effect of government subsidies on the R&D investment of SME Board-listed enterprises and verify the mediating role of financing constraints in this effect. The extent to which government subsidies influence the R&D investment of SME Board-listed enterprises is associated with the enterprises' ownership characteristics, debt ratios, and times interest earned ratios. This study contributes to the literature on the SMEs Board market and may provide the Chinese government insights into developing industry policies that maximize the effectiveness of government subsidies.