Lottery and Enterprise Innovation: A Research Based on the View of Culture
- ZHAO Qifeng, ZHAO Wenzhe, Dic Lo & ZHAO Qiongwei
- ZHAO Qifeng (Renmin University of China, 100872)ZHAO Wenzhe (Central University of Finance and Economics, 100081)Dic Lo (Renmin University of China; University of London, 100872)ZHAO Qiongwei (Wuhan Institute of Technology, 430205)
Culture is an important factor affecting corporate innovation. Lottery culture reflects either the spirit of adventure or gambling preference. This paper investigates the influence of cultural environment on enterprise innovation from the perspective of lottery. Theoretically, the spirit of adventure improves enterprise innovation while gambling preference impedes innovation. This article depicts local lottery culture based on the proportion the welfare lottery and sports lottery sales holds in the per capita GDP. It is found that local lottery culture has significant adverse impact on innovation of local firms. Each 0.1 percent increase of the local lottery sales ratio in the per capita GDP could lead to about 21.6% decrease in the number of applications for patents on average in the next year. The effect is significant. The adverse impact of local gambling preference on corporate innovation is more evident among state-owned firms, non-high-tech firms, the firms in East China and relatively large firms. This research finds that the local gambling preference mainly discourages firm innovation through discouraging innovation intention of inventors, reducing research and development investments, decreasing innovation efficiency and human capital accumulation.
JEL：O31, R11, M14
- Enterprise Innovation, Lottery Culture, Adventure Spirit, Gambling Preference