The heterogeneity of innovation, government R&D support and enterprise innovation performance

Abstract

The heterogeneity of enterprise innovation is private information which government can not capture, leading that traditional innovation support can not achieve its goals. The paper introduces heterogeneity into the traditional signal transmission model to study how heterogeneity of innovation affects the government R&D support. The conclusion shows that the innovation scale effects caused by government investment support will be greatly reduced when considering the innovative heterogeneity. Especially when the innovation efficiency is significantly different, the original scale effect will be significantly reduced. Based on R&D resources inventory data, the paper demonstrates that the role of government support will be weakened in the case of heterogeneity.