Government support and firm innovation performance in Chinese science and technology parks: The perspective of firm and sub‐park heterogeneity

Abstract

Abstract Science and technology parks (STPs) are established to promote the firm innovation performance via agglomeration economy and government support in China. On‐site qualified firms obtain government R&D funding as a type of government support, and they are offered differential innovation service caused by the differential capabilities of sub‐parks which scatter throughout a single city. It is debatable whether those government supports at firm and sub‐park levels can promote firm innovation capabilities. This study takes Zhangjiang National Innovation Demonstration Zone, Shanghai as an example. It applies a Tobit regression model to analyse the databases of Zhangjiang Annual Sampling Survey of Firms 2015 and Zhangjiang Development Report 2015. We find out at the firm level, government R&D funding has a significant and positive influence on firms' innovation, but government R&D funding generates a crowing‐out effect the innovation performance of on‐site firms with more R&D investment themselves. At the sub‐park level, innovation service agencies of sub‐parks do not exert an important role in influencing firms' innovation, and they even have negative moderating effects on the relationship between firm R&D investment and firm innovation performance. It reflects the mismatch between innovation service of STPs and firms' needs in China.