Regional Potential Comparative Advantages,Innovation Incentive Policies and Firm Innovation
Tailoring measures to local conditions to improve firm innovation is of great signifi-cance for promoting high-quality economic development.This paper empirically examines the effect of interactions between regional potential comparative advantages and innovation incentive polices on firm innovation.This paper finds that the significant enhancement of regional potential comparative advantages greatly increases the promotion effect of innovation incentive policies on firm innovation.The conclusion remains valid after a series of robustness checks.Furthermore,for firms in industries with regional potential comparative advantages,their innovation level is significantly increased due to the leverage effect and technology internalization effect under the support of innovation incentive policies.Meanwhile,for foreign-invested firms,firms with higher R&D intensity,firms with longer industrial chains,and firms located in economically developed regions,the interaction of regional potential comparative advantages and innovation incentive pol-icies generates a stronger promotion effect on firm innovation.Finally,this paper identifies the enhancement of firm innovation resulting from the interaction between regional potential compara-tive advantages and innovation incentive policies as"substantive innovation".
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