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The impact of technology identification policy on firm innovation: Evidence from China - ScienceDirect
Source: sciencedirect.com
Article summary:
1. This paper uses a difference-in-differences (DID) method to test the impact of China's high technology firm identification policy on firm innovation.
2. Multiple robustness tests confirm that the policy does improve the total number of patent applications and invention applications.
3. The policy has a more prominent and positive effect on innovation capabilities for firms located in regions with higher taxation burden and relatively more developed products and factor markets.
Article analysis:
The article is generally reliable, as it provides evidence from multiple sources to support its claims, such as firm-level data from companies listed on China's A-share market from 2006 to 2017, and multiple robustness tests to confirm its findings. The article also presents both sides of the argument by discussing potential counterarguments, such as how the policy affects firms in different regions differently.
However, there are some areas where the article could be improved upon. For example, it does not provide any evidence for its claim that government subsidies are an important channel through which this policy affects a firm's innovation capabilities. Additionally, it does not explore any potential risks associated with implementing this policy or discuss any possible unintended consequences that may arise from it. Furthermore, while the article does present both sides of the argument, it does not present them equally; instead, it focuses more heavily on presenting evidence in favor of its main argument rather than exploring counterarguments in depth.