4.6 Article

Will Increasing Government Subsidies Promote Open Innovation? A Simulation Analysis of China's Wind Power Industry

Journal

SUSTAINABILITY
Volume 13, Issue 23, Pages -

Publisher

MDPI
DOI: 10.3390/su132313497

Keywords

government subsidy; open innovation; absorptive capacity; cooperation stability; wind power industry

Funding

  1. National Natural Science Foundation of China [71774160]

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This study investigates the impact of subsidy policies on cooperative stability among large enterprises, finding that increased subsidies only improve positive cooperative behavior when partners meet certain thresholds in absorption capacity and technological value.
Keeping open innovation both stable and sustainable can be difficult when it involves cooperation between large enterprises. Some empirical studies suggest that subsidy policies can play a positive role. This study addresses two key questions that follow from this observation: first, if the intensity of a subsidy policy is increased, can it play a greater role in strengthening the stability of cooperation between firms? Second, what other factors play a mediating role in this effect? Utilizing a dynamic game model, this paper analyses influential factors such as absorptive capacity, frequency of engagement and technical value on cooperative stability, and investigates the role of innovation policy in the process of cooperation through a random number-driven simulation. The findings indicate that only when the absorption capacity and technological value of both partners meet a certain threshold is the probability of positive cooperative behavior improved. Otherwise, increased subsidies tend to foster negative cooperative behavior instead.

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