TY - JOUR
T1 - Nonmonetary awards and innovation
T2 - Evidence from winning China's Top Brand Contest
AU - Luo, Lianfa
AU - Cheng, Zhiming
AU - Ye, Qingqing
AU - Cheng, Yanjun
AU - Smyth, Russell
AU - Yang, Zhiqing
AU - Zhang, Le
PY - 2024/8
Y1 - 2024/8
N2 - We use the short-lived, but high-profile, China Top Brand Award to examine the causal effects of nonmonetary awards on firm innovation. To do so, we create a panel dataset by matching official China Top Brand Award recipients to the innovation outputs of listed companies. Results from difference-in-differences estimates show that firms that received the China Top Brand Award have a higher number, and better quality, of filed patents. We find that the positive effects of winning the China Top Brand Award on innovation outputs operate through higher government subsidies to winning firms. We also find that the positive effects of award-winning are stronger among state-owned enterprises, larger enterprises, and better-performing enterprises, as well as in provinces with stronger intellectual property rights protection. Our results are robust to a series of sensitivity checks.
AB - We use the short-lived, but high-profile, China Top Brand Award to examine the causal effects of nonmonetary awards on firm innovation. To do so, we create a panel dataset by matching official China Top Brand Award recipients to the innovation outputs of listed companies. Results from difference-in-differences estimates show that firms that received the China Top Brand Award have a higher number, and better quality, of filed patents. We find that the positive effects of winning the China Top Brand Award on innovation outputs operate through higher government subsidies to winning firms. We also find that the positive effects of award-winning are stronger among state-owned enterprises, larger enterprises, and better-performing enterprises, as well as in provinces with stronger intellectual property rights protection. Our results are robust to a series of sensitivity checks.
KW - China Top Brand Award
KW - Intellectual property rights
KW - Innovation outputs
UR - http://www.scopus.com/inward/record.url?scp=85193601641&partnerID=8YFLogxK
U2 - 10.1016/j.chieco.2024.102190
DO - 10.1016/j.chieco.2024.102190
M3 - Article
SN - 1043-951X
VL - 86
SP - 1
EP - 16
JO - China Economic Review
JF - China Economic Review
M1 - 102190
ER -