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Chinese governments at all levels have been using various policies to encourage innovation by firms. However, few studies considered the superimposed effects of multilevel innovation policies. Based on the panel data of 443 Chinese innovation–oriented firms from 2008 to 2011, this study investigates the complementarities between national and local science and technology programmes. The heterogeneous effects across stages of the innovation process are also considered. Results show that the national science and technology (S&T) programmes significantly increase firms' external research and development (R&D) expenditure but inhibit the commercialisation. In addition, the national and local S&T programmes complement each other in promoting external R&D expenditure while presenting substitutive in increasing patent outputs. This paper further finds that national and local programmes are more likely to be complementary at high subsidy intensity. This study contributes to the development of policy mix theory and has manifold implications for designing pertinent innovation policy systems [ABSTRACT FROM AUTHOR]

This study explores how local political turnover affects corporate R&D investment and innovation performance in an emerging economy like China. Based on the panel data of 956 listed firms in China, we found that local officials' turnover has a direct negative effect on both R&D investment leap and corporate innovation performance. Furthermore, local officials' turnover inhibits innovation performance provided the new officials are transferred from other places but improves innovation performance provided the old officials are dismissed for corruption or other violations. Finally, R&D investment leap positively moderate the relationship between local officials' turnover and corporate innovation performance. These findings contribute to the literature on how political uncertainty at the regional level affects R&D and innovation activities at the firm level and provide significant guidance for both the government and manufacturers in China. [ABSTRACT FROM AUTHOR]