The impact of strategic emerging industries policy mix on firms' innovation performance

Abstract

Based on the data of strategic emerging firms listed in Chinese A-shares from 2007-2019, this paper uses the PSM-DID model to investigate the impact of the combination of credit financing and tax incentives policies on firms' innovation performance. It is found that the policy combination constructed in this paper has a positive impact on the innovation performance of strategic emerging firms at a high significant level. In addition, by testing credit financing and tax incentives separately, it is found that both credit financing and tax incentives have a positive effect on the innovation performance of enterprises.