| Abstract: |
| Innovation is the fundamental driver of long-term economic growth and the enhancement of social welfare. However, innovation does not occur spontaneously; the rational decisions of individual firms often deviate from the socially optimal outcome, making government intervention indispensable. Yet, information asymmetry between the government and firms makes it difficult for the government to accurately assess firms` technological capabilities and true costs, thereby hindering the design of effective incentive measures and giving rise to adverse selection. To address this, this paper constructs an innovation incentive game framework that covers the entire process of technological innovation-technology industrialization-downstream demand cultivation, and systematically explores how the government can implement appropriate subsidies when firms possess multi-dimensional private information, thereby inducing firms to voluntarily disclose their true information and engage in innovation activities. |
|