Fig. 12
From: The role of innovation-led profits in the development of an international financial centre
Source: Sharif and Huang (2010)
Does Hong Kong and Shenzhen Government Financial Aid for Innovation Actually Hurt Innovation? The figure shows the extent to which various factors explain a firm’s share of a new products market and R&D/innovation on the Mainland. For example, firms with support from the central government in Beijing tend to capture a greater share of it’s new products market-niche. The effect of financial support from local governments in the Guangzhou region (Hong Kong and Shenzhen) remains much less clear. The authors show one model where the effect of such support hurts innovation—and one which helps innovation.