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Information technology-enabled gig platforms connect freelancers with consumers to provide short-term services or asset sharing. The growth of gig economy, however, has been accompanied by controversy, and, recently, food delivery platforms have been criticized for using data-driven techniques to set strict delivery time limits, resulting in negative externality. This study aims to provide managerial implications on the decisions of delivery time and subsidy for food delivery platforms.

The authors develop an analytical framework to investigate the optimal delivery time and subsidy provided to delivery drivers to maximize the gig platform's profit and compare the results with those of a socially optimal outcome.

The study reveals that it is optimal for the platform to shorten the delivery time and raise the subsidy when the food price becomes higher; nevertheless, the platform should shorten the delivery time and lower the subsidy in response to a higher delivery fee. Increases in the food price or delivery fee have non-monotonic effects on the number of fulfilled orders and the platform's profit. In addition, the authors solve the socially optimal outcome and find that a socially optimal delivery time is longer than the platform's preferred length when the delivery fee is high and the negative externality is strong.

The food delivery platform's optimal decision on delivery time is derived after taking negative externality into account, which is rarely considered in the prior literature but is a practically important problem.

This study aims to comprehensively investigate the relationship between government subsidies and innovation performance in Chinese enterprises listed on the SSE STAR Market.

An unbalanced sample, covering 285 observations in 215 enterprises listed on the SSE STAR Market from 2019 to 2020, was used to explore the relationships between government subsidies, R&D investment, CEO shareholding and innovation performance. Counterfactual analysis is added for robustness testing.

Empirical evidence confirms that government subsidies have an inverted U-shaped relationship with R&D investment and innovation performance. Meanwhile, R&D investment is a mediating variable between government subsidies and innovation performance. Moreover, CEO shareholding plays a moderating role between government subsidies and R&D investment. The higher the CEO ownership, the steeper the inverted U-shaped relationship.

The government should introduce a dynamic mechanism to reasonably control subsidy amounts and strengthen the supervision of subsidy use. Enterprise managers should be aware of how incentives affect the firm’s innovation and implement a coordinated development of government subsidy policies and internal enterprise governance.

This study adds new empirical evidence for the relationship between government subsidies and enterprise innovation performance. The risk incentive provided by stock options is an important micro mechanism to compensate for the lack of government subsidies. The study identifies ways to promote firm innovation based on the synergistic effect of internal and external mechanisms.

This study focuses on an emerging market, China, and investigates the effects of corporate research and development (R&D) spending and subsidies on stock market reactions to seasoned equity offering (SEO) announcements.

The study uses a sample of SEOs announced over the period of 2003–2018 in the Chinese A-share market. The cumulative abnormal stock returns (CARs) are adopted to measure the stock market response to SEOs. The R&D spending-to-sales ratio (R&D subsidies) in 2 years before SEO announcements is used to measure the pre-SEO R&D spending (R&D subsidies). The instrumental variable (IV) regression method is applied to address the endogeneity problem in the robustness test.

This study demonstrates that firms with high R&D spending suffer stock overpricing and experience a negative market reaction when they announce SEOs, but R&D subsidies alleviate stock overpricing and mitigate the negative relationship between R&D spending and SEO market reactions.

Although the prior studies have demonstrated that information asymmetry, which causes stock overpricing, explains negative stock market reactions to SEOs, it is unclear if a certain factor that causes information asymmetry affects SEO market reactions. This study fills this gap and focuses on R&D spending, demonstrating that R&D spending is negatively related to SEO performance.

The purpose of this study is to determine the extent to which R&D subsidy can affect the innovation process of manufacturing venture firms by examining the output additionality measured as both proximal indicators of innovation and distal indicators of growth. Further, the differences in output additionality between the clusters in the subcontracting regime were examined to investigate whether the effect of R&D subsidy can vary depending on subcontracting practices and structure among large enterprises and venture firms.

This study uses survey data of the Korea Venture Business Association conducted in 2012, 2013, 2014, 2015, and 2016 respectively, which selects a random sample from venture firms by stratified random sampling method based on the industry sector, size and location for each survey year. This study analyzed the data using an endogenous treatment effects model to estimate the average treatment effect of R&D subsidy, yielding more accurate estimates than a traditional treatment effects model by controlling the unobserved endogenous components.

This research found that R&D subsidy may not facilitate the process of transformation of innovation into financial growth even though R&D subsidy can facilitate the innovation process and contribute to producing new and improved products. This research also reveals that the relationship between R&D subsidy and innovation performance for firms heavily dependent on subcontracting is generally much weaker than those for independent subcontractors. Further, the present study exhibits that public R&D subsidy for independently subcontracting venture firms is more effective for the growth in both employment and sales than those for subcontracting with large enterprises or other subcontractors.

R&D subsidy for venture firms does not relieve the burden of liability of newness and smallness of venture firms, especially the disadvantage in market penetration and competition. In addition, venture firms subcontracting with large enterprises or other prime subcontractors tend to achieve incremental innovation with the help of the technology and competence of large companies and run stable businesses through a predetermined market.

R&D subsidy for venture firms does not relieve the burden of liability of newness and smallness of venture firms, especially the disadvantage in market penetration and competition. Further policy measures should be implemented so as to identify and eliminate barriers to market acceptance for new products of venture firms.

This research verifies that the effect of R&D subsidy may harmful to the sales growth of venture firms and the output additionality differs with the degree of dependency on subcontracting practices and structure.

This study aims to investigate the relationship between government subsidies, R&D expenditures and overcapacity, and to explore the heterogeneity effects in different time periods and different types of companies. It can provide theoretical and practical guidance for the development of the photovoltaic industry.

This paper constructs a mediation model to explore the impact of government subsidies on overcapacity and on R&D expenditures, and to propose an indirect way to disentangle the impact of government subsidies on the creation of overcapacity from the positive aspect of increased R&D expenditures. A total of 94 listed enterprises in the Chinese photovoltaic industry were selected as the sample over the period 2012–2019.

There was significant overcapacity in the photovoltaic industry. Government subsidies had a positive effect in promoting overcapacity and R&D expenditures. The influence of government subsidies on excess capacity increased and on R&D expenditures decreased over time. Compared with large enterprises, government subsidies the small enterprises received had a greater positive impact on the overcapacity and a smaller positive impact on R&D expenditure. R&D expenditures restrained the influence of government subsidies on overcapacity, but the suppression effect was limited and decreased over time. The indirect effect in small enterprises was greater than that of large enterprises.

This paper studied government subsidies, R&D expenditure and overcapacity in the same framework and used bias-corrected bootstrapping to explore the path of “government subsidies–R&D expenditures–overcapacity”. The heterogeneous effects in different periods and different types of firms are discussed.

In this paper, the authors aim to consider the manufacturer's battery research and development (R&D) decision under subsidy. The supply chain includes two manufacturers, which produce substitutable electric vehicles, and a battery supplier. One of the manufacturers can choose to develop batteries or buy batteries. The authors assume consumers do not have enough trust in the manufacturer-made battery.

Stackelberg game is made use of to study the battery R&D strategy of the manufacturer under the incentive of government subsidies. This paper makes a comparative analysis on six situations, then the authors get some conclusions and give some managerial insights.

The results show that subsidy strategies do not necessarily reduce actual payments when the manufacturer does not research and develop batteries. The retail prices and actual payments are closely related to the substitutability and total cost advantage of product. The authors also find consumer trust positively affects the demand of the electric vehicles using the manufacturer-made batteries and then affects the manufacturer's battery R&D decision. When consumers have low trust in manufacturer-made battery, subsidy can bring greater sales and make R&D more profitable than procurement, so that the manufacturer chooses R&D. This study's findings also suggest consumer subsidy is always better for the government.

Distinguished from previous studies, the authors discuss the decision-making of component research, and introduce various government subsidy strategies and consumer trust to study their roles in the manufacturer's battery R&D choice.

The purpose of this study is to examine the moderating effect of two types of external funds in terms of loan and government subsidy on the relationship between R&D investment and firms' innovation performance in emerging markets, as well as the contingent role of firm leader's international experience associated with the effects of loan and government subsidy.

The authors tested the hypotheses using a longitudinal dataset of 716 high-tech firms of Zhongguancun Science Park (ZSP) in China during 2008–2014, covering detailed information on the operations, financial situation and R&D activities, patents, etc. The authors finally identified an unbalanced panel of 2,430 firm-year observations. Considering the dependent variable is the countable data and non-negative values, the negative binomial regression with fixed effects was adopted to test the hypotheses.

The results show that the more loans or government subsidies the firm receives, the weaker the positive effect of R&D investment on firms' innovation performance in emerging markets. Furthermore, the findings reveal that firm leaders' international experience can mitigate the negative moderating effect of government subsidies, but strengthen the negative moderating effect of loans.

The study provides new insights into how loans and government subsidies as external funds influence the effectiveness of R&D in enhancing innovation performance, and the findings highlight the fact that more external funds can reduce firm R&D efficiency. Moreover, the authors also enrich the resource orchestration theory by revealing the critical role of firm leaders' international experience in the decision-making of resource configuration to mitigate the inefficiency of high subsidies in emerging markets.

The purpose of this study is to evaluate the impact of research and development (R&D) subsidies and tax credits on the innovative processes of Chilean firms.

Probit and tobit models for pseudo-panel with instrumental variables are estimated using data from different versions of the Innovation Survey covering the period 2007–2016.

The results show that R&D subsidies and tax credits have a statistically significant and positive effect on the probability of performing internal and external R&D, but do not affect the intensity of R&D spending, reflecting a crowding-out effect on private funds of both instruments. On the other hand, firms that simultaneously receive R&D subsidies and tax credits have a lower percentage of innovative sales. Furthermore, there are not effects statistically significant of the R&D subsidies and/or tax credits on the number of intellectual property rights applications.

It is concluded that both instruments have not been effective to encourage innovative outputs in Chilean firms.

Este estudio evalúa el impacto de los subsidios e incentivos tributarios para investigación y desarrollo (I&D) sobre los procesos innovativos de las firmas chilenas.

Se estiman modelos Probit y Tobit con variables instrumentales para pseudo-panel a partir de datos provenientes de diversas versiones de la Encuesta de Innovación que cubren el periodo 2007–2016.

Los resultados muestran que los subsidios e incentivos tributarios para I&D tienen un efecto positivo y estadísticamente significativo sobre la probabilidad de realizar I&D interna y externa, pero no afectan la intensidad del gasto en I&D lo que refleja un efecto expulsión sobre los fondos privados de ambos instrumentos. Por otro lado, las firmas que reciben simultáneamente subsidios e incentivos tributarios para I&D tienen menor porcentaje de ventas innovativas. Además, no se detecta un impacto significativo de los subsidios y/o incentivos tributarios sobre los derechos de propiedad intelectual solicitados por las firmas.

Así, se concluye que ambos instrumentos no han sido efectivos para incentivar los outputs innovativos en las firmas chilenas.

The purpose of this paper studies the transformation effect of research and development (R&D) subsidies on firm performance in emerging economies from the perspective of capital and product markets. It also studies the mechanisms behind R&D subsidies’ transformation effect.

This study mainly explores the transformation effect of government R&D subsidies on corporate performance and its non-linear characteristics using Chinese A-share listed companies’ data from 2008 to 2016. The authors use the instrumental variable method to reduce endogenous problems and conduct a series of robustness tests to support the conclusions. The mechanisms of the transformation effect are explored via mediation effect models. The impact of firm heterogeneities on the transformation effect is also addressed.

Results indicate that R&D subsidies promote firm performance and experience obvious transformation effects only within a “moderate interval.” R&D subsidies play a vital role in enhancing firm performance mainly via two mechanisms, namely, signal financing and innovation incentives. Further, the transformation effect is much greater in non-state-owned, young and large enterprises.

This paper contributes to understanding how R&D subsidies affect corporate performance from the perspective of capital and product markets by applying the linear and non-linear techniques that can clarify the relationship between the selected variables under study. The findings of this study might be helpful to identify the right directions for the government to implement and promote the R&D subsidy policies more effectively.

The purpose of this paper is to analyse whether the effect of innovation subsidies on firms' R&D investment varies depending on whether the firm is suffering from financial constraints.

To address this analysis, the authors provide a theoretical model and test their hypothesis using an econometric analysis of an unbalanced panel of 3,865 innovative Spanish firms during 2010–2017. They employ the SABI database to obtain firms' financial and economic data and incorporate firms' MORE financial rating. Specifically, the authors use the GMM-SYS technique to regress and measure the marginal effects of innovation subsidies size on firms' R&D investment and the influence of firms' financial constraints.

The results of this work indicate that financial constraints negatively moderate the effect of subsidies on R&D investment; that is, those firms that receive a subsidy and suffer financial constraints invest less in R&D projects than those which also receive the subsidy and do not suffer financial constraints. Besides, this work found that innovation subsidies alone do not significantly increase firms' R&D investment.

From a neoclassical point of view, the existence of financial constraints is the justification of public innovation policies. However, due to the difficulty of measuring financial constraints, innovation literature has abandoned the analysis of this crucial variable. This work reintroduces this vital variable and analyses how it interacts with innovation subsidies on firms' R&D investment.