Effects of government financial incentives on firms’ innovation performance in China: Evidences from Beijing in the 1990s

The purpose of this paper is to investigate the effects of Chinese government financial incentives on firms’ innovation performance during the nation's initial economic transition period in the mid-1990s. Through a large-scale empirical survey of more than 1000 Chinese manufacturing firms, the empirical evidences show that whereas the major government financial incentives such as Special Loans and Tax Credits were positively influential to...