`Guidance' or `misleading'? The government subsidy and the choice of enterprise innovation strategy
Document Type
Article
Publication Date
9-1-2022
Abstract
Government subsidies have a direct impact on firms' innovation strategies. The game relationship between the government, the subsidized firm and its competitors under different subsidy strategies affects firms' innovation behavior and thus innovation performance. This paper uses a dynamic evolutionary game theory approach based on cost-benefit differences to analyse the mechanisms by which government subsidy strategies affect firms' innovation strategies. It is found that the marginal benefits of a firm's innovation strategy will directly affect the game outcome, indicating that the choice of innovation strategy depends on the maximization of individual firm's interests. At the same time, a firm's innovation strategy is influenced by the firm's own innovation ability and competitors' innovation strategy, and there are two game equilibria. Government subsidies have a positive contribution to the innovation strategy choice of subsidized firms, but have a crowding-out effect on non-subsidized competing firms. The strength of the penalty (the efficiency of the implementation of government subsidies), the marginal revenue of the subsidized firms' rational use of government subsidies and the competitors' strategic choices will directly affect the game outcome.
Keywords
Innovation strategy, Government subsidy efficiency, Evolutionary game, Dynamic strategy, High-quality industrial development
Funders
Ministry of Education's Humanities and Social Sciences Research Youth Fund Project Government Organization Reorganization and Enterprise Product Safety Information Disclosure-Quasi-Natural Experiment Research Based on the Newly Established Municipal Super,National Natural Science Foundation of China Youth Project Stable Employment in the United States, Cross-border Migration of Science and Technology Talents and Innovation of Chinese Enterprises [72102229],Hubei Province Soft Science Surface Project Research on the Technology Breakthrough of Hubei's Infrared Imaging Industry under the Crisis of Epidemic Core Shortage [CXRK2022000239]
Publication Title
Frontiers in Psychology
Volume
13
Publisher
Frontiers Media
Publisher Location
AVENUE DU TRIBUNAL FEDERAL 34, LAUSANNE, CH-1015, SWITZERLAND