Non‐R&D Subsidies and Digital Product Innovation in China

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Abstract
We examine the impact of non‐R&D subsidies on digital product innovation among Chinese manufacturing firms and explore the conditions that influence this relationship. Building on theories of non‐R&D subsidies effectiveness, we propose that non‐R&D subsidies positively influence a firm's digital product innovation. This relationship is further strengthened when the firm is a state‐owned enterprise and holds a low status in the market hierarchy. Results from a longitudinal dataset of publicly listed Chinese firms support our main arguments. Our findings extend the understanding of the drivers of digital product innovation and the role of non‐R&D subsidies in innovation activities.
Funding Information
  • National Natural Science Foundation of China (72272133, 72274167)

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