| Variable | Definition | Measurement (Unit) |
| lnrd | Investment in innovation projects (R&D) | Logarithm of R&D investment (in RMB 10,000) |
| size | Firm Size | Logarithm of total assets at year end (in RMB 10,000) |
| prf | Profitability | Operating profit margin (%) |
| lr | Leverage (Debt ratio) | Total liabilities/Total assets (%) |
| age | Firm Age | Number of years from establishment date to the study period |
| nat | Nature of equity ownership | SOEs = 0; PREs = 1, FIEs = 2, Others = 3 |
| fin | Market concentration by industry | Industrial total assets /Industrial total employees (RMB 100,000/person) |
| num | Industrial competition intensity (participants) | Total # of participating firms in the industrial segment |
| apr | Industrial average profitability | Industrial average of operating profit margin (%) |
| gbu | Governmental subsidies in current period | Logarithm of governmental subsidies to innovation investment in current period (in RMB 10,000) |
| pgb | Governmental subsidies in prior period | Logarithm of governmental subsidies to innovation investment in prior period (in RMB 10,000) |
| mar | Level of regional marketization | Index of regional marketization (Source: |
| gam | Government-market relations | Index of government-market relation (Source: |