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Journal of Beijing Normal University(Social Sciences) ›› 2019, Vol. 0 ›› Issue (1): 135-146.

• Economy • Previous Articles     Next Articles

The Influence on the Innovation Efficiency of Industrial Enterprises Exerted by Incentives for Officials and Government Innovation Preferences

LI Zheng1,2, YANG Siying2   

  1. 1.Research Center of the Chinese State-owned Economy,Jilin University,Changchun 130012;
    2.School of Economics,Jilin University,Changchun 130012,China
  • Received:2018-03-29 Online:2019-01-25 Published:2019-06-24

Abstract: Due to the inherent defects of market mechanism and the externality feature of innovation output,the construction of regional innovation system internally depends on the guidance and support of local government.As government actioninitiators,local officials may be influenced by various incentives when making decisions,which may have a further impact on the innovational function of government in the construction of regional innovation system.Based on the provincial industrial panel data from 2009 to 2015,this paper empirically analyzes how incentives for officials and government innovation preferences affect the innovation efficiency of industrial enterprises.The results demonstrate that promotion incentives and economic power incentives directly enhance the innovation efficiency of industrial enterprises as well as reduce the government innovation preferences,thereby inhibiting the increase of the innovation efficiency of industrial enterprises.Officials' rent-seeking incentive may cause corruption and erode innovation efficiency of industrial enterprises.As the value produced by innovation is difficult to assess,officials' rent-seeking may also improve the government innovation preferences,and promote the efficiency of regional innovation to some extent.The net effect of promotion incentives and economic power incentives on innovation efficiency is positive,while that of rent-seeking incentive negative.Therefore,the incentive mechanism of local officials'assessment and compensation should be improved,and local governments actions should be supervised so that they can play a leading role in the regional innovative economy.

Key words: incentives for officials, government innovation preferences, industry innovation efficiency

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