We examine the effects of China's 2009-2010 stimulus package for innovation differentials between state-owned firms (SOEs) and privately-owned firms (POEs). Using a unique dataset of Chinese manufacturing firms, we find that in the pre-stimulus period SOEs patent at a lower rate than POEs in the...

China has been both praised and criticized for using industrial policy to achieve its economic goals. Does industrial policy work for China? Particularly, are these industrial policies making the targeted Chinese firms more productive? Alternatively, are efforts to promote productivity undercut...