Event

Mar 21, 2024
China’s Innovation Policy: An Evidence-Based Perspective

In this colloquium we will discuss Philipp Böing and Bettina Peters' co-authored paper on R&D subsidies in China. In their paper, the authors investigate the misappropriation of R&D subsidies and evaluate the consequences for policy effectiveness. Using Chinese firm-level data from 2001-2011, they identify that 42 percent of grantees misused R&D subsidies, which totals 53 percent of all R&D subsidies. Misappropriation leads to a substantial loss of the causal impact of R&D subsidies, as measured by the difference of the intention-to-treat effect and complier average causal effect. Results show that R&D expenditures could have been stimulated beyond the subsidy amount (additionality), but noncompliance has resulted in medium-level partial crowding out. Overall, misappropriation has reduced the effectiveness of China’s R&D policy by more than half.

Address
Boltzmannstraße 18, 14195 Berlin, Germany
Room
B18–008/Zoom
Contact and Registration

We welcome both internal and external guests. For further information about the LMRG Colloquium series, specific sessions, or registration (a limited number of places are available), please contact Dieu Linh Bui Dao.

About This Series

The LMRG Colloquium is a venue for members and guests of the Lise Meitner Research Group, "China in the Global System of Science," to share their work in progress. It is an opportunity to raise questions, discuss methodological challenges, or get feedback on preliminary conclusions. We aim to create a supportive atmosphere that combines rigorous criticism with genuine curiosity.

2024-03-21T14:00:00SAVE IN I-CAL 2024-03-21 14:00:00 2024-03-21 15:30:00 China’s Innovation Policy: An Evidence-Based Perspective In this colloquium we will discuss Philipp Böing and Bettina Peters' co-authored paper on R&D subsidies in China. In their paper, the authors investigate the misappropriation of R&D subsidies and evaluate the consequences for policy effectiveness. Using Chinese firm-level data from 2001-2011, they identify that 42 percent of grantees misused R&D subsidies, which totals 53 percent of all R&D subsidies. Misappropriation leads to a substantial loss of the causal impact of R&D subsidies, as measured by the difference of the intention-to-treat effect and complier average causal effect. Results show that R&D expenditures could have been stimulated beyond the subsidy amount (additionality), but noncompliance has resulted in medium-level partial crowding out. Overall, misappropriation has reduced the effectiveness of China’s R&D policy by more than half. Dr. Philipp Böing Philipp Boeing is Associate Professor at Goethe University Frankfurt and Senior Researcher at ZEW - Leibniz Centre for European Economic Research in Mannheim, Germany. In his research, he investigates the role of innovation incentives and the impact of innovation on firm performance and economic growth. His work is characterized by a combination of unique micro data, econometric analysis and methodological advances. He is particularly interested in policy evaluation, patent indicators, productivity, and import competition. With a strong empirical focus on China and its global rise, he maintains a critical understanding of the data generating process and institutions in China. He has advised the World Bank, the OECD, and the German Commission of Experts for Research and Innovation, among others. He was a Visiting Professor at Peking University for two years and a Taiwan Fellow at Academia Sinica. He is a Research Affiliate of IZA - Institute of Labor Economics and Fellow of Tsinghua University.  Boltzmannstraße 18, 14195 Berlin, Germany B18–008/Zoom Franziska Marliese FröhlichDieu Linh Bui Dao Franziska Marliese FröhlichDieu Linh Bui Dao Europe/Berlin public