Performance feedback and firms’ R&D frequency: a comparison between state-owned and private-owned enterprises in China
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R&D investments are an important precursor to innovation and ultimately affect a firm’s long-term performance. Prior research has treated R&D expenses as static over time, but over the last few years, scholars have switched to a more dynamic perspective of R&D investment. Using data from Chinese listed manufacturing firms, this study investigates the influence of performance feedback on R&D investment frequency, and further explores how that influence differs in SOEs and POEs. These results provide insight into the dynamics of firms’ R&D investment, which can help decision-makers properly stimulate firms’ R&D investments in China’s emerging economy.
KeywordsR&D investments Frequency Performance feedback Social aspiration Historical aspiration
The authors thank the Associate Editor Professor Dylan Sutherland and two anonymous reviewers for their insightful comments and guidance. This study was supported by the National Natural Science Foundation of China (Project No. 71572143).
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