Keywords: r&d Investment, r&d policy, China, Innovation, Moderation Model
This paper aims at studying the combined interaction of innovation policies and innovative
capacity of firms in the relationship between r&d investment and firm's performance.
The analysis is carried out on a sample of Chinese firms with the general purpose of shedding
some light on the role played by public and private actors in increasing the innovative capacity
of the productive system.
In particular, by means of a moderation model, data show that the innovation policies
positively moderate the relation between r&d and performance (even if it not at the highest
values of the moderator). This effect is noticeably amplified if combined with the innovative
activities implemented by the firm, operationalized as the ratio of capital represented by intellectual
property rights and non-protected owned technology.