Global Journal of Accounting and Finance
The purpose of this paper is to investigate the effect subsidies have on firm-level innovation across Eastern European and Central Asian countries and to assess if these effects move to increase firm-level capability. Specifically, we investigate the extent subsidy programs act to shape and guide firm-level innovative capabilities and how the presence of such capabilities affect operational performance. We employ a Probit model to investigate firm-level innovation and OLS regression to assess how subsidies, in association with the decision to adopt foreign technology and in-house research and development (R&D) affect firm productive capacity. Results suggest subsidies promote innovation and that when these subsidies are contemporaneously considered in the face of the decision to adopt foreign technologies and employ in-house R&D, firm-level capacity increases.
Original Publication Citation
Al-Wreiket, A., Burnett, R. D., Skousen, C. J., & Akaaboune, O. (2021). Innovation capacity: A firm level response to subsidy activity in a national setting. Global Journal of Accounting & Finance, 5(2), 141-166. https://www.igbr.org/wp-content/Journals/2021/GJAF_Vol_5_No_2_2021.pdf
Al-Wreiket, Assyad; Burnett, Royce D.; Skousen, Christopher J.; and Akaaboune, Ouadie, "Innovation Capacity: A Firm Level Response to Subsidy Activity in a National Setting" (2021). Accounting Faculty Publications. 9.