High-Tech Certification, Financial Constraints, and R&D Performance: Evidence from Chinese SMEs

National high-tech enterprise certification is a crucial policy aimed at encouraging corporate innovation in China. However, it is unclear whether high-tech certification provides extra benefits to Chinese firms besides tax and subsidy advantages. In this study, I investigate the influence of high-tech enterprise certification on financial constraints and firms’ R&D performance. High-tech enterprise certification is typically regarded as a signal that alleviates information problems, facilitates external financing, and motivates firms to allocate more financial resources to value-enhancing R&D projects. Using a sample of Chinese small and medium-sized enterprises (SMEs) during the period 2007–2024, this study shows that (1) information asymmetry and financing problems are mitigated due to high-tech certification, and (2) R&D input and output are significantly enhanced, and R&D spending makes a greater contribution to firm performance after SMEs attain high-tech status. This study suggests a new effect of government policy, namely, the signal effect, on SME R&D performance.