Incremental Innovation, Government Subsidies, and New Venture Growth

Weiming Li, Dan Li, Chunyan Li, Hui Feng, Shuo Wang

OAI: oai:igi-global.com:320818 • DOI: 10.4018/JGIM.320818

Based on resource-based theory, signal transmission theory, government intervention theory, and firm growth theory, this study constructs a model of new venture growth from the perspective of incremental innovation through theoretical derivation and empirical research. The goal is to clarify the mechanism of the role of incremental innovation, government subsidies, and new venture growth. This article takes the GEM-listed enterprises from 2009 to 2018 as the research sample to empirically test the hypothesis of correlation, and the results show that: (1) Incremental innovation has a significant positive effect on both government subsidies and new venture growth; (2) Government subsidies have a significant positive effect on new venture growth and play a partial mediating role in the relationship between enterprises incremental innovation behavior and new venture growth; and (3) Media coverage positively moderates the relationship between incremental innovation and government subsidies, that is, there is a signal transmission phenomenon among start-ups, government departments, and external investors.

Global Information Technology Computer Science and Information Technology IT Research and Theory