We investigate the moderating role of corruption on the effect of government researchand development (R&D) expenditure on enterprise innovation in China, using annualdata from 2002 to 2013 in a panel of 30 provinces. Our findings show that R&Dexpenditure does not influence the number of patent applications, but it does influencethe number of patents granted. When considering official corruption, the interactionterm of R&D expenditure and corruption has a statistically significantly positive effecton the numbers of patent applications and patents granted, with corruption havingsignificantly positive effects on the ratio of the number of patents granted to thenumber of patent applications.
Zhou, Xiao-Bo; Wei, Wei; Jang, Chyi-Lu; and Chang, Chun-Ping
"THE IMPACTS OF GOVERNMENT R&D EXPENDITURE ON INNOVATION IN CHINESE PROVINCES: WHAT’S THE ROLE OF CORRUPTION,"
Bulletin of Monetary Economics and Banking: Vol. 21:
3, Article 1.
Available at: https://bulletin.bmeb-bi.org/bmeb/vol21/iss3/1