The impact of economic policy uncertainty on innovation in Chinese enterprises

Puntos clave

• Innovation significantly declines with increasing economic policy uncertainty, hindering R&D efforts.
• A 15% increase in economic policy uncertainty correlates with a 7% reduction in innovation output.
• Using a longitudinal data analysis across various sectors in China, the study highlights investment reductions due to uncertainty.
• Findings suggest that reducing economic policy uncertainty may foster greater innovation in enterprises.