Government Subsidies, Spatial Agglomeration and Innovation Performance-An empirical study of industrial policy disputes

This paper uses the panel data of high-tech industry enterprises to study the impact of government subsidies on enterprise innovation performance. And test whether the government subsidy policy affects the location choice of enterprises, further enhancing the spatial agglomeration, Making the government subsidy policy indirectly play an innovation effect. The empirical results show that government subsidies can actively promote the innovation performance of enterprises, but the government subsidies do not significantly affect the location choice of enterprises or enhance the spatial agglomeration of enterprises in the region. This shows that the government subsidy policy plays a single role in the innovation effect, and fails to form a close relationship with the market mechanism of the spatial agglomeration effect.