The effect of innovation-driven policy on innovation efficiency: based on the listed sports firms on Chinese new Third Board

PurposeThis paper aims to examine the effect of innovation-driven polices on innovation efficiency of sport firms listed on the new Third Board in China.Design/methodology/approachFirm innovation efficiency, including comprehensive innovation efficiency, pure technical efficiency and scale innovation efficiency were calculated by using data envelopment analysis (DEA) models. The input variables and output variable in the DEA model were selected through correlation analysis. The effects of several innovation-driven policies on the innovation efficiency of sport firms were analyzed by a series of multiple regression analyses.FindingsRegarding the innovation efficiency evaluation of sport firms, total research and development (R&D) investment and total R&D staff are two suitable input variables, and total profit, sales revenue and new effective patent are three suitable output variables. Income tax relief for high-tech enterprise has a positive effect on comprehensive innovation efficiency and pure technical efficiency, and governmental subsidies have a negative effect on comprehensive innovation efficiency and pure technical efficiency. However, pretax deduction of R&D expenses does not have a significant effect on comprehensive innovation efficiency, pure technical efficiency and scale innovation efficiency, and income tax relief for high-tech enterprise and pretax deduction of R&D expenses also have no effect on scale innovation efficiency. For a large-scale sport firm, the negative effect of “governmental subsidies” and the positive effect of “income tax relief for high-tech enterprise” on its pure technical efficiency are more significant. For a sport firm with more R&D staff, governmental subsides and “income tax relief for high-tech enterprise” have more positive effect on its innovation efficiency.Practical implicationsThe study findings could potentially provide practical guidance to both managers and government-industry policymakers in the sports industry.Originality/valueFirstly, this paper focused on Chinese sport firms from a rising industry in a developing country (China). The related conclusions are conducive to the governmental management of new industries and the innovation management of new enterprises. Second, this paper analyzed the effect of three special innovation-driven policies on three types of innovation efficiency and explored enterprise innovation development in more detail. Third, this paper not only discusses the effect of innovation-driven policies on innovation efficiency, but also the heterogeneity of their effects.