China’s distinctive civil–military integration policy and firm innovation

• DOI: 10.1093/scipol/scae013
• Publication Date: 2024-04-30T17:29:44Z
• Authors: Shuai Wang; Mengyue Xia; Xing Shi; Bojun Hou; Shu Lu
• Keywords: Investment; Difference in differences; Natural experiment

Abstract Despite the widespread implementation of civil–military integration (CMI) policies in various countries, there remains a significant debate surrounding their impact on innovation. Taking set National Civil–Military Integration Strategy China 2015 as quasi-natural experiment, this paper uses Propensity Score Matching and Difference (PSM-DID) method to systematically examine CMI policy firm The results demonstrate that has notably increased intensity firms’ Research Development (R&D) investment, but does not exert influence innovation output efficiency. Notably, effect is primarily observed among incumbent military firms large-scale firms. Moreover, exhibits considerable fostering new cooperation links, yield deepening or promoting network agglomeration. imply yet deeply affected processes patterns. These findings provide manifold implications for understanding decision-making.