Next Article in Journal
Sustainable Production Line Evaluation Based on Evidential Reasoning
Previous Article in Journal
Divergent Developmental Trajectories and Strategic Coupling in the Pearl River Delta: Where Is a Sustainable Way of Regional Economic Growth?
Article Menu
Issue 10 (October) cover image

Export Article

Open AccessArticle
Sustainability 2017, 9(10), 1812; doi:10.3390/su9101812

Political Connections, Government Subsidies and Technical Innovation of Wind Energy Companies in China

1
School of Economics and Management, Nanjing University of Information Science & Technology, Nanjing 210044, China
2
China Institute of Manufacturing Development, Nanjing University of Information Science & Technology, Nanjing 210044, China
3
College of Economics and Management & Research Centre for Soft Energy Science, Nanjing University of Aeronautics and Astronautics, Nanjing 211106, China
4
College of Business and Public Affairs, Alabama A&M University, Normal, AL 35762, USA
*
Author to whom correspondence should be addressed.
Received: 2 September 2017 / Revised: 22 September 2017 / Accepted: 2 October 2017 / Published: 9 October 2017
(This article belongs to the Section Energy Sustainability)
View Full-Text   |   Download PDF [213 KB, uploaded 11 October 2017]

Abstract

Developing wind energy is one of the win win measures in response to climate changes and energy security. In order to promote technical innovation in the wind-energy industry, the government grants various fiscal subsidies to wind-energy companies every year. To acquire these subsidies, enterprises often employ those with political backgrounds as members of the board of directors and board of supervisors. On the one hand, the acquisition of subsidies may indeed promote the technical innovation capacity of enterprises, but, on the other hand, due to the existence of “the grabbing hand”, the technical innovation capacity of enterprises may be weakened. We selected 35 Chinese wind-energy listed companies to analyze the relationship between political connections, subsidies and the technical innovation capacity. Results indicate that, political connections to an enterprise weaken its innovative potential and achievement. Moreover, the higher the strength of political connections is, the stronger the negative impact it will bring to the innovative capacity of the enterprise. Modulation of government subsidies, however, can alleviate the negative effects of political connections. View Full-Text
Keywords: political connections; subsidies; research and development input; patent political connections; subsidies; research and development input; patent
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

Scifeed alert for new publications

Never miss any articles matching your research from any publisher
  • Get alerts for new papers matching your research
  • Find out the new papers from selected authors
  • Updated daily for 49'000+ journals and 6000+ publishers
  • Define your Scifeed now

SciFeed Share & Cite This Article

MDPI and ACS Style

Qu, J.; Cao, J.; Wang, X.; Tang, J.; Bukenya, J.O. Political Connections, Government Subsidies and Technical Innovation of Wind Energy Companies in China. Sustainability 2017, 9, 1812.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top