Template-type: ReDIF-Paper 1.0 Author-Name: Huang, Can Author-Workplace-Name: chuang@zju.edu.cn Author-Workplace-Name: School of Management, Zhejiang University Author-Name: Wu, Yilin Author-Workplace-Name: School of Statistics, Renmin University of China Author-Name: Mohnen, Pierre Author-Workplace-Name: mohnen@merit.unu.edu Author-Workplace-Name: UNU-MERIT / MGSoG Author-Name: Zhao, Yanyun Author-Workplace-Name: School of Statistics, Renmin University of China Title: Government support, innovation and productivity in the Haidian (Beijing) District Abstract: This paper examines whether the government support in favour of firms located in the Haidian district of Beijing, which includes the Zhongguancun Science Park, was effective in terms of innovation and economic performance. We use a dataset of 500 manufacturing firms that results from a merger of the 2007 nation-wide innovation survey and the Annual Survey of Industrial Enterprises databases from the National Bureau of Statistics. We find that among all firms (state- or collectively-owned, non-state- or collectively-owned and Hong Kong, Macau, Taiwan or other foreign-funded firms) that received direct government support for innovative activities only the non-state- or collectively-owned domestic firms invested more in innovation than the firms that did not receive such support. However, despite higher government support, domestic firms have lower labour productivity than foreign-funded firms, including those funded from Hong Kong, Macau, or Taiwan. Classification-JEL: O32, O38 Keywords: CDM, innovation policy, Haidian, evaluation Series: UNU-MERIT Working Papers Creation-Date: 2013 Number: 058 File-URL: http://www.merit.unu.edu/publications/wppdf/2013/wp2013-058.pdf File-Format: application/pdf File-Size: 275 Kb Handle: RePEc:unm:unumer:2013058