Research on the Influence Effect of Government Subsidies on the Growth of High-Tech Enterprises

Lin Xiao; S.M. Ferdous Azam

doi:10.6981/FEM.202609_7(9).0005

Authors

Lin Xiao Graduate School of Management, Management and Science University, Shah Alam, Malaysia
S.M. Ferdous Azam Graduate School of Management, Management and Science University, Shah Alam, Malaysia

DOI:

https://doi.org/10.6981/FEM.202609_7(9).0005

Keywords:

Government Subsidies; High-Tech Enterprises; Enterprise Growth; Influence Effects.

Abstract

As China's innovation-driven development strategy is gradually deepened, industries are accelerating their transformation towards high-end development. Against this backdrop, high-tech enterprises, as important entities for fostering new quality productive forces and promoting the high-quality development of the real economy, have a development quality that is directly related to the effectiveness of industrial transformation and the cultivation of core scientific and technological competitiveness. As an important fiscal and tax support tool, government subsidies can directly alleviate the R&D funding pressure of scientific and technological innovation enterprises. However, existing studies still have divergences on the actual empowerment effect of government subsidies and their differentiated roles at the property right level. Therefore, this paper selects the panel data of A-share high-tech listed companies on the Shanghai and Shenzhen main boards from 2015 to 2024 to empirically test the impact effect of government subsidies on enterprise growth and the heterogeneity of property rights. The study finds that government subsidies can significantly improve the patent output and return on total assets of enterprises, and drive the growth of high-tech enterprises through the dual channels of improving innovation quality and increasing operational efficiency. Moreover, compared with state-owned high-tech enterprises, subsidies have a better positive incentive effect on the growth of private high-tech enterprises. On this basis, this paper puts forward countermeasures and suggestions such as implementing differentiated subsidy allocation, improving the whole-process performance supervision of subsidies, and establishing a long-term innovation support mechanism, in order to effectively improve the allocation efficiency of fiscal subsidy resources and facilitate the high-quality growth of high-tech enterprises.

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