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From risk to resilience: Geopolitical uncertainty and heterogeneous R&D investment responses in renewable energy
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DOI：10.1016/j.ribaf.2026.103498.png)
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Abstract
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• Geopolitical uncertainty and R&D investment follow a U-shaped relationship in China’s renewable energy sector. • Three identification strategies and the Oster (2019) coefficient stability test confirm that the U-shaped pattern is robust to endogeneity and omitted variable concerns. • The U-shaped pattern is most pronounced among firms in the middle of the R&D distribution. • Large firms, non-state-owned enterprises, and firms receiving government subsidies display more pronounced non-linear responses to geopolitical uncertainty. • Rising geopolitical pressure widens the innovation gap across firms rather than inducing a uniform response.
Keywords:
Geopolitical uncertainty
R&D investment
Renewable energy firms
Firm heterogeneity
Government policy
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