Tax breaks boost innovation efficiency for small businesses in Anhui Province.
The study looked at how well different types of companies in Anhui Province, China are at innovating. They found that both big and small-medium companies are pretty good at innovating, with some small-medium companies being especially good. The size of a company affects how well it innovates, with smaller companies benefiting more from being bigger. Government subsidies for research and development can actually hurt a company's ability to innovate, while tax breaks help. Big companies need different strategies to improve innovation compared to small-medium companies.