The Impact of Public R & D Subsidies on Private R & D Expenditure and Its Innovation Performance—An Empirical Study Based on Industrial Enterprises in Guangdong Province

Based on the panel data of Guangdong industrial enterprises from 2006 to 2013, this paper empirically studies the impact of public R & D subsidies on private R & D expenditure and the impact of the two on the innovation performance of enterprises by using random effects model and fixed effects model. The results show that public R & D subsidies can promote enterprises to carry out private R & D expenditure, and there is an obvious time lag. Using grouping studies, we found that low-level public R & D subsidies can encourage enterprises to increase their private R & D expenditure, but high-level public subsidies will crowd out part of private R & D expenditure. Finally, this paper divides the innovation performance of enterprises into the stage of knowledge output and the stage of marketization. In the knowledge output stage, public R & D subsidies and R & D staff input can significantly improve the innovation performance of enterprises; in the marketization stage, public R & D subsidies cannot promote the increase of new product income, while the private R & D expenditure of enterprises can significantly increase the income of new products.