Institutional Complementarity or Institutional Crowding Out?An Examination Based on Economic Policy Uncertainty and Firms' Exploratory R&D Investments
In an uncertain economic environment,exploratory R&D investment serves as a vital approach for firms aiming to achieve sustainable development.It investigated the influence of economic policy uncertainty on firms' exploratory R&D investments,with a particular focus on how equity incentives,political connections,and their interaction impact this relationship.The results reveal that rising economic policy uncertainty encourages firms to increase their exploratory R&D efforts.Additionally,equity incentives positively moderate this relationship,while political connections have a negative moderating influence.Furthermore,an institutional crowding-out effect exists between political connections and equity incentives,where political connections diminish the positive moderation provided by equity incentives.The heterogeneity analysis indicates that economic policy uncertainty has a more significant positive effect on exploratory R&D in firms with high human capital and advanced level of digital transformation.The findings help clarify the strategic logic behind firms' choices to invest in exploratory R&D under uncertain conditions,and offer valuable insights for both economic policy-making and firms' R&D practices.
万方数据
维普
