Profit Constraint, Ownership Structure and Indigenous Innovation  

作　　者：Li Yong 李勇(School of Economics and Management, Northwest University, Xi’an, China Research Center of West China’s Economic Development)

机构地区：[1]School of Economics and Management, Northwest University, Xi’an, China Research Center of West China’s Economic Development

出　　处：《China Economist》2019年第2期114-129,共16页中国经济学人（英文版）

基　　金：supported by the Youth Program of the National Natural Science Foundation of China(NSFC)"Study on the Impact of Human Capital Mismatch on the Loss of Corporate Innovation and Efficiency under Administrative Monopoly"(71704141);the "Study on the Internal Mechanism of the Impact of Distortions in China's Human Capital Allocation on Indigenous Innovation under the Background of Administrative Monopoly"of the Ministry of Education Cultural and Social Sciences Fund Youth Program(17YJC790084)

摘　　要：Under a logical self-consistent theoretical framework, this paper discusses SOEs' innovation efficiency and innovation conundrum facing Chinese local firms. By creating a theoretical model of endogenous technology level, this paper finds that credit discrimination and soft budget constraint have both a crowding out effect and compensatory effect on corporate innovation. When firms engage in less profitable innovation, the compensatory effect outweighs crowding out effect, and a higher share of SOEs will promote the overall level of innovation. On the contrary, when firms engage in more profitable innovation, the compensatory effect is smaller than crowding out effect, and a higher share of SOEs will diminish overall innovation. In this sense, SOE innovation exhibits a threshold characteristic. Then, this paper carries out an empirical test using the inter-provincial panel data of 1997-2013, which proves our assumption. Finally, this paper arrives at conclusions and policy implications.Under a logical self-consistent theoretical framework, this paper discusses SOEs' innovation efficiency and innovation conundrum facing Chinese local firms. By creating a theoretical model of endogenous technology level, this paper finds that credit discrimination and soft budget constraint have both a crowding out effect and compensatory effect on corporate innovation. When firms engage in less profitable innovation, the compensatory effect outweighs crowding out effect, and a higher share of SOEs will promote the overall level of innovation. On the contrary, when firms engage in more profitable innovation, the compensatory effect is smaller than crowding out effect, and a higher share of SOEs will diminish overall innovation. In this sense, SOE innovation exhibits a threshold characteristic. Then, this paper carries out an empirical test using the inter-provincial panel data of 1997-2013, which proves our assumption. Finally, this paper arrives at conclusions and policy implications.

关 键 词：SOES COMPENSATORY EFFECT CROWDING out EFFECT THRESHOLD characteristic 

分 类 号：F[经济管理]