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International Conference on Management Science and Engineering Management

ICMSEM 2017: Proceedings of the Eleventh International Conference on Management Science and Engineering Management pp 499–510Cite as

The Empirical Evidence of the Effect on the Enterprises R&D from Government Subsidies, Political Connections and Rent-Seeking

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Part of the book series: Lecture Notes on Multidisciplinary Industrial Engineering ((LNMUINEN))

Abstract

This study investigates the impact of rent-seeking behavior, political connections, and government science and technology (S&T) subsidies on the research and development (R&D) of private listed enterprises. Based on empirical data of China’s private listed enterprises between 2008 and 2012, this paper performs validation at three levels and obtains suggestive conclusions. First of all, the purpose to obtain more S&T subsidies motivates private listed enterprises to take rent-seeking activities which can facilitate them in establishing political connections (PCs). Secondly, rent-seeking activities could eventually result in crowing-out effect of the R&D input, especially for the local PCs. Thirdly, the side effect of rent-seeking is more significant for enterprises located in provinces of high corruption levels, which weakens the availability of government S&T subsidies. The improper intervention of government distorts the market resources allocation.

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Acknowledgements

This research was supported by the project of Research Center for System Sciences and Enterprise Development (Grant No. Xq16C03).

Author information

Authors and Affiliations

  1. School of Finance, Southwestern University of Finance and Economics, Chengdu, 610074, People’s Republic of China

    Dongliang Cai, Wu Jiang & Qiuhua Xu

  2. Department of Finance, Hanqing Advanced Institute of Economics and Finance, Renmin University of China, Beijing, 100872, People’s Republic of China

    Zhen Yang

Authors
  1. Dongliang Cai
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  2. Zhen Yang
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  3. Wu Jiang
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  4. Qiuhua Xu
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Corresponding author

Correspondence to Dongliang Cai .

Editor information

Editors and Affiliations

  1. Business and Administration, Sichuan University, Chengdu, China

    Jiuping Xu

  2. Fuzzy Logic Systems Institute, Tokyo University of Science, Tokyo, Tokyo, Japan

    Mitsuo Gen

  3. Azerbaijan National Academy of Sciences, Baku, Azerbaijan

    Asaf Hajiyev

  4. Monash University, Clayton, Victoria, Australia

    Fang Lee Cooke

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© 2018 Springer International Publishing AG

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Cai, D., Yang, Z., Jiang, W., Xu, Q. (2018). The Empirical Evidence of the Effect on the Enterprises R&D from Government Subsidies, Political Connections and Rent-Seeking. In: Xu, J., Gen, M., Hajiyev, A., Cooke, F. (eds) Proceedings of the Eleventh International Conference on Management Science and Engineering Management. ICMSEM 2017. Lecture Notes on Multidisciplinary Industrial Engineering. Springer, Cham. https://doi.org/10.1007/978-3-319-59280-0_40

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  • DOI: https://doi.org/10.1007/978-3-319-59280-0_40

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-59279-4

  • Online ISBN: 978-3-319-59280-0

  • eBook Packages: EngineeringEngineering (R0)

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