China has set itself some very ambitious goals. It aims to become the world’s leading nation in science and technology (S&T) before 2050. According to the 14th five-year plan, China’s gross expenditures on…
We investigate the misappropriation of R&D subsidies and evaluate its consequences for policy effectiveness. Using Chinese firm-level data for 2001-2011, we identify that 42% of grantees misused R&D subsidies,…