Does the Crowd-Out Effect of R&D Subsidies Exist in the Pharmaceutical Industry? Evidence from Chinese Companies ()
ABSTRACT
Dissenting from existing multi-industries work, this
paper particularly takes the pharmaceutical entities in the Chinese industrial
enterprise database as a sample and uses the threshold regression to examine
the impact of government R&D subsidies on private R&D investment,
patent quantity and new product sales. We find that government R&D
subsidies can effectively crowd in private investment. However, due to the crowd-out threshold is
too high, the crowd-out effect does not actually exist in the pharmaceutical
industry. A similar story happens to new product sales; but for the number of
patents, there is only promoting effect.
Share and Cite:
Ni, K. (2020) Does the Crowd-Out Effect of R&D Subsidies Exist in the Pharmaceutical Industry? Evidence from Chinese Companies.
Modern Economy,
11, 645-656. doi:
10.4236/me.2020.113048.
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