Government Innovation Subsidies, Management Myopia, and Enterprises’ Green Technological Innovation

Innovation in enterprise green technologies is the main engine and a key factor in promoting China to achieve high-quality economic and social development. This study investigates the effects of government innovation subsidies on Enterprises' green technological innovation using panel data of Chinese A-share listed firms in Shanghai and Shenzhen from 2010 to 2023 as a sample. The study shows that government innovation subsidies can enhance Enterprises’ green technological innovation. Following some robustness tests, this conclusion remains valid. Mechanism tests show that government subsidies enhance the degree of innovation in green technologies for businesses by inhibiting managerial myopia. The heterogeneity results indicate that government innovation subsidies are more obvious on the green technological innovation level of state-owned enterprises and enterprises in the eastern region. The findings of the study enrich the theoretical analysis of government innovation subsidies and enterprises’ green technological innovation and provide an essential guideline value for the formulation of government subsidy distribution methods and assessment mechanisms, the enhancement of enterprises’ internal drive for green innovation, and the realization of high-quality development of enterprises.