Innovation decision

a value of 1 when the output of the new product is greater than zero, otherwise 0

a value of 1 when its R & D expenditure is greater than zero, otherwise 0

Innovation density

Ln (the output value of new products/total industrial output value + 1)

Ln (R & D investment/sales + 1)

HMT_Firm

Ln (Hong Kong, Macao and Taiwan Capital/Paid-in Capital + 1)

HMT_Sector

Ln (Entry indicators for Hong Kong, Macao and Taiwan-funded industries + 1)

Export Intensity

Ln (Export Delivery Value/Industrial Sales Output Value + 1)

Capital Intensity

Ln (Net Fixed Assets/Employees + 1)

Enterprise scale

Ln (Sales)

Per capita wage

Ln ((Salary + welfare expenses)/number of employees + 1)

Human Capital

Ln(Staff education costs/number of employees + 1)

Financing constraints

Ln (Interest expense/total assets + 1)

Corporate profit margin

Ln (Operating profit/sales + 1)

Age of the enterprise

Ln ((Current year-opening year) + 1)