Political connections, institutional environment and R&amp;D expenditure

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Science Research Management ›› 2015, Vol. 36 ›› Issue (4) : 56-64.

Political connections, institutional environment and R&D expenditure

Li Shitian¹, Qiu Weinian²

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Abstract

R&D Expenditure is one of the important indicators to measure enterprises' independent innovation abilities. Based on the disclosed 2009-2010 R&D Expenditure of Chinese listed companies of manufacturing and IT industry, this paper analyzes the influential factors on R&D expenditure from the perspective of political connections and institutional environment by using correlation and WLS methods. The empirical results show that political connectedfirms have less level of R&D expenditure, and firms with better institutional environment in its province have less level of R&D expenditure. The research has reference value on explaining low R&D expenditure level of Chinese firm and reflecting incentive mechanism for Chinese entrepreneurs' initiative spirit.

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independent innovation / political connections / institutional environment / R&D expenditure

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Li Shitian, Qiu Weinian. Political connections, institutional environment and R&D expenditure[J]. Science Research Management. 2015, 36(4): 56-64

References

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