Government support, innovation and productivity in the Haidian (Beijing) District
Can Huang, Yilin Wu, Pierre Mohnen & Yanyun Zhao
#2013-058
This paper examines whether the government support in favour of firms
located in the Haidian district of Beijing, which includes the
Zhongguancun Science Park, was effective in terms of innovation and
economic performance. We use a dataset of 500 manufacturing firms that
results from a merger of the 2007 nation-wide innovation survey and the
Annual Survey of Industrial Enterprises databases from the National
Bureau of Statistics. We find that among all firms (state- or
collectively-owned, non-state- or collectively-owned and Hong Kong,
Macau, Taiwan or other foreign-funded firms) that received direct
government support for innovative activities only the non-state- or
collectively-owned domestic firms invested more in innovation than the
firms that did not receive such support. However, despite higher
government support, domestic firms have lower labour productivity than
foreign-funded firms, including those funded from Hong Kong, Macau, or
Taiwan.
Keywords: CDM, innovation policy, Haidian, evaluation
JEL codes: O38