| Reference |
Methodology |
Characteristics |
Research findings out |
| Liu and Dong (2022) |
ChinaSurveyN= Chinese high-tech firms in Beijing’s Zhongguancun Science Park (ZSP) from 2008 through 2014Correlations and regression analysisResource orchestration theory (ROT) |
Analyse the relationship between investment and company innovation in emerging markets, using government money as a moderator.Government fundingInnovation effectiveness |
The results show that:The positive effect of investment on firms’ innovation in emerging markets is weaker with more government funding the firm receives.Government funding negatively moderates the relationship between investment and firms’ innovation. |
| Wan et al. (2022) |
ChinaPanel data for the 30 regional high-tech sectors in China from 2004 to 2016Real option theoryStrategic growth options theory |
Examine the impact of preferential tax policy on the two-phase innovation efficiency of China’s hi-tech industries.Tax policyInnovation efficiencyEconomic policy uncertainty |
The study found that:It is clear that the preferential tax policy has an impact on innovation.Innovation and preferential tax policies are negatively regulated by the uncertainty of economic policy. |
| Lü and Zhang (2022) |
ChinaSurveyPanel data from192 listed companies in China from 2015-2019 |
Examine the financial support efficiency for enterprise performance of new generation high-tech firms in China.Financial supportEnterprise Performance |
The study found that:The effectiveness of financial support for new generations of high-tech businesses is often low, owing to the instability of scale efficiency of financial support. |
| Zhang et al. (2022) |
ChinaSurvey N= 262 manufacturers in three areas of China SEM and regression analysis. |
Examine the relationship between investment, absorptive capacity and firm innovation.InvestmentAbsorptive capacityFirm's innovation |
The results show that investment significantly impacts a firm's innovation through the mediating role of absorptive capacity. |
| Zhou et al. (2022) |
ChinaPanel data from 2007 to 2011 for the firms’ energy consumption from the National Tax Survey Database (NTSD). |
Analyse the impact of China's value-added tax change on a firm's outputs, which offers businesses long-term tax incentives to invest in fixed assets.Tax reformfirms' outputsEnergy saving |
The study found that Permanent tax incentives lead to encouraging firms to invest in fixed assets, which positively affect energy-saving and improve firms' outputs. |
| Xie et al. (2022) |
ChinaSurvey221 Chinese manufacturing firms in the Yangtze Delta RegionSEM |
Investigate the influence of the innovation process on firms’ financial performance.Innovation processFinancial performance |
The study discovered that innovation had a U-shaped effect on businesses' financial performance, starting out negatively then turning more favourable as innovation levels rise. |
| Yu et al. (2021) |
ChinaUsing data envelopment analysis (DEA) on a dynamic network.OLS regression, VIFThe innovation value chain theory |
Examines the innovation of high-tech companies in China.Government grant (e.g., tax reduction and loan allowance)Innovation. |
The study found that:Incentives in the form of government grants e.g., tax reduction and loan allowance for high-tech companies have positive impact on high-tech parks by improving the innovation, and helping firms acquire competitive advantages. |
| Mina et al. (2021) |
EuropeData for 13406 firms, between 2014-2017 from SME Instrument (CORDA) database and ORBIS Bureau van Dijk’s company database.Signalling theory |
Examine the relationship between public funding and innovation of SMEsGrantsSMEs innovation |
The results show that:Public funding is a strong predictor that affects positively on SMEs innovation in the form of patenting.The more innovative SMEs firms tend to have a strong growth orientation. In the case of young firms their growth prospects can only be realised if firms are able to access external capital. |
| Labeaga et al. (2021) |
SpainA representative sample of Spanish manufacturing firms spanning 2001–2014 |
Examine the role of tax incentives in product innovations, Firms' innovation (number of products)Tax incentives (tax credit) |
The findings demonstrate that only for SMEs does the quantity of product innovations depend favourably on the longevity of tax credits. |
| Dai and Chapman (2022) |
ChinaN= 6572 observationsThe covariate balancing propensity score (CBPS) methodMarket failure theory |
Analyse how tax incentive interventions affected the design of a China-based high- and new-technology enterprise tax incentive program's innovation effectiveness. Tax incentives interventionsInnovation effectiveness |
The results show that:Interventions using tax incentives encourage businesses to patent more often in China. Not all businesses gain equally; those with bigger incentives see bigger impacts from innovation. |
| Arshi et al. (2021) |
India, Oman and the UAESurveyTwo-wave panel data with a time period of 12 months (T1n = 417, and T2n = 403). Amos=PLSDiffusion of innovation theory |
To create metrics for how well innovation influences performance of outcomesInnovation effectivenessPerformance outcomes |
The study found that:The endogenous efficacy of innovation is determined by various features, including its degree, cost, frequency, and speed. Innovation effectiveness impact positively on financial and nonfinancial performance outcomes. |
| Zhang and Lee (2021) |
ChinaSurveyChina's intelligent manufacturing industries have 317 listed businesses.SEM |
To examine determinants of financial performance in China’s Intelligent Manufacturing IndustryGovernment supportInnovationR&D investmentFinancial performance. |
The study found that: Innovation initiatives, which are mostly driven by increased expenditure in research and development (R&D), result in positive financial results.Through the R&D investment, government support policy has been proven to be closely associated to excellent financial performance.R&D investments have been found to be linked to innovation capabilities. |
| Farooq et al. (2021) |
IndiaSurvey278 firms (manufacturing and service) from the National Capital Region and the Punjab state of India.SEM |
Examine the relationship between innovation orientation and business performance. Innovation orientationBusiness performanceFirm's size (moderator) |
The results show that: Innovation orientation has a significant positive impact on business performance. Firm size (based on the number of employees) moderates the relationship between innovation orientation and business performance. |
| Sun et al. (2020) |
China N= a sample of 1341 firms pre and post-incentivized between 2004–2007 and 2008–2012.Difference-In-Difference (DID) approach |
Examining the influence of value-added tax incentives of new energy industry on firm's profitability.Value added tax incentivesFirm's profitability (Performance) |
The study found that value-added tax incentives of new energy industry could decrease the profitability (return on equity) mainly due to the insufficient innovation motivation caused by the tax incentives. |
| Wang (2019) |
TaiwanSurveyN= 135 Taiwanese SMEs firmsSEM |
Examining the impact of innovation on firm performance.Technological Innovation (Radical and incremental)Firm performance |
The study found that radical innovation positively impacts on firm performance in SMEs. While, incremental innovation negatively influences on firm performance. |
| Tian et al. (2020) |
ChinaSample of “always eligible” and “newly eligible” firms for tax incentivesDifference-In-Difference (DID) approach |
Examining the impact of tax incentives on firm-level R&D investment and patenting and firm's innovation in China.Tax incentivesFirm's innovation |
The study found that:Extending the super tax incentives help to close the gap in innovation between the “always eligible” and “newly eligible” firms. The firms that received tax incentives were spending more on sales of new products, and long term patenting. |
| Wang et al. (2020) |
Ten emerging market countries. survey related to enterprise and the follow-up survey of innovation.Regression analysisRBV theory |
Examine how external knowledge acquisition interacts to affect innovation performance.External knowledge acquisition Innovation performance |
The results show that external knowledge acquisition play a role in enhancing innovation performance. |
| Song et al. (2020) |
ChinaPanel data from 30 regions in China from 2009 to 2017 |
Examining the impact of the effect of environmental regulation and tax incentives on green product innovation in information and communication technology (ICT).Environmental regulation Tax incentives Green product innovation |
The study found that tax incentives play a significant role in enhancing green product innovation in the ICT industry. |
| Kim et al. (2018) |
KoreaSurveyData from Report on Korean Innovation Survey 2010: SME Manufacturing Sector” by the Science and Technology Policy Institute.A simulation analysis |
Empirically examine the influence of investment on performance (i.e., patent and new product development) The effectiveness of innovationPerformance |
The results show that the concentration on efforts toward innovation is an essential factor for the creation of corporate performance. |
| Oltra et al. (2018) |
SpainSurveyN= 244 firms in Spanish low- and medium-technology industries.Hierarchical multiple linear regression analysis |
Examine the relationship between innovation practices and firm performance.Innovation practicesFirm's performance |
The study found that innovation practices have a high influence on firm performance |
| Dekoulou and Trivellas (2017) |
GreekSurveyN= 180 executives, in 163 Greek advertising and media organizations.PLS-SEM |
Examining the influence of organizational structure on innovation as well as its implications on financial performance Organisational structureInnovation financial performance |
The study found that:Training enhances an organization's innovation capability, while supervision as a coordination mechanism significantly restricts this capability.Innovation enhances business value and financial performance. |
