The Influence of Government R&D Subsidies on China’s Industrial Structure Transformation and Upgrading: Push or Drag?

Implementing an innovation-driven development strategy in an all-round way and promoting industrial structure transformation and upgrading through innovation, is an important starting point to promote the high-quality development of China’s economy. However, innovation often has problems such as market failure and insufficient investment due to its inherent positive externalities and uncertainties. As a general policy for stimulating innovation, whether government RD （2）The impact of government RD （3）The government RD （4）The government RD （5）The mechanism of action shows that government R&D subsidies have effectively promoted China’s industrial structure transformation and upgrading by significantly enhancing the ability of enterprise innovation. The results of this study show that in the future, more consideration should be given to the structural problem of government R&D subsidies while increasing the amount, especially to the small and medium-sized domestic-funded enterprises in the central and western regions.