Do Industry Associations Promote Innovation in Micro and Small Enterprises
Based on data from the 2015 China Micro and Small Enterprise Survey(CMES)and the 2010 China Pri-vate Enterprise Survey(CPES),this paper investigates the impact of industry associations on the innovation of micro and small enterprises(MSEs).The study reveals that membership in such associations significantly promote both innovation in-puts and outputs of MSEs.These findings demonstrate robustness through a series of robustness tests and endogenous discus-sions.Industry associations promote innovation of MSEs through financial,market,and government support and technical assistance.And market support,financial support,government support,and technical assistance have diminishing marginal effects on MSEs'innovation.Notably,the innovation-promoting effect of industry associations operating outside the system surpasses that of their counterparts functioning within the system.Drawing on these results,the paper concludes by offering policy recommendations to further bolster the role of industry associations in fostering innovation among MSEs.
industry associations and chambers of commercetechnological innovationdecoupling reformEprobit model
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