Study on the Impact of Institutional Environment on the R&D Behavior of Private Manufacturing Enterprises in China: An Empirical Analysis Based on World Bank's Survey Data

Based on World Bank's micro survey data on Chinese private manufacturing enterprises, this study analyzed the impact of three dimensions (legal protection, market intermediaries' development, trust) of institutional environment on in-house R&D decision, R&D cooperation decision and R&D intensity of enterprises. Furthermore, this study made an in-depth analysis of the substitution impact of formal and informal institutions on enterprises' R&D intensity. The results showed that the promotion of legal protection level in one region could not only facilitate enterprises to participate in In-house R&D and R&D cooperation significantly, but also promote enterprises' R&D intensity. The development level of market intermediaries imposed a positive impact on enterprises' R&D intensity and their participation in internal R&D activities. The promotion of the trust level in one region had a positive effect on enterprises' R&D intensity and their participation in cooperative R&D activities. In areas where the development level of trust was low, enterprises were more dependent on legal protection and market intermediaries to carry out R&D activities; that is, formal institutions and informal ones could be substitutes for each other in influencing enterprises' R&D intensity.