Lecture title: Market Shocks and Business Innovation Support
Time: 11:00-12:30, Thursday, 19th May 2022
Venue: Conference Room 119, Wenqin Building
Moderator: Dr. Gao Sihan
Presenter: Dr. Zou Jianwen
Dr. Zhou is a full-time researcher at IIDPF of Zhongnan University of Economics and Law, with research interests in consumption, investment and structural estimation methodology.
Abstract:
Corporate innovation faces complex market shocks, where persistent and temporary shocks have distinct impact mechanisms. This paper effectively assesses the structural characteristics of the insurance capacity of corporate innovation against market shocks and the effect of government subsidies based on the behavioural characteristics of corporate R&D. The study finds that: the insurance capacity of Chinese firms' innovation against persistent market shocks tends to be weaker in general, and this weakening trend mainly comes from state-owned enterprises. The insurance capacity of private firms against market shocks is weaker than that of SOEs, but the insurance capacity of private firms' innovation against market shocks increases significantly after 2012. Government innovation subsidies can significantly weaken the short-term impact of persistent shocks on private and high-technology firms, effectively preventing market shocks from having a 'levee' effect on firm innovation, but the effect is less pronounced for SOEs.