Innovation practice of the enterprise is a complicated dynamic process which shows different environmental characteristics and different degrees of uncertainty and externality in each stage of activity. Therefore, it is important to consider the government involvement in enterprise innovation initiatives and interventions in the different stages of innovation is a question to be explored.
PURPOSE:
This research study examines staged government interventions, situational characteristics impact in manufacturing innovative enterprises in china.
DESIGN/METHODOLOGY/APPROACH:
This quantitative study used the panel data including 443 manufacturing innovative enterprises in China from 2008 to 2011 to analyze the differential relationship between the government intervention and enterprises’ innovation performance by building the framework of “government intervention – situational characteristics-innovation performance”.
FINDINGS:
The empirical results show that single-stage government intervention produces an inhibitory effect on enterprises’ innovation performance, but multi-stage government intervention has a significant role in promoting their performance, especially the combination of the initial stage of innovation and the stage of innovation marketization. The moderation of the situational characteristics on the relationship between the government intervention and enterprises’ innovation performance has a larger difference.
CONCLUSION:
This paper supplements and extends previous research on institutions and innovations by the analysis of the relationship between government intervention, enterprise innovation, and regulatory mechanisms of enterprise R&D internationalization strategy, industry and regional characteristics. We deeply explore the transmission mechanism and internal process of government support in enterprise innovation, and effectively promote the development of the theory and practice of government support and enterprise innovation.
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