Abstract:Directional funding of technology and science is one of the most important resource for the technological innovation of enterprises. However, the influence of this kind of funding on enterprises in scientific outputs is not very clear. Based on causal inference, the impact of applied research funding and basic research funding on scientific outputs of enterprises was investigated to evaluate the promotion of directional funding of technology and science through difference-in-difference and synthetic difference-in-difference method. The conclusions are as follows. Applied research and basic research funding boosts the number of scientific outputs of enterprises. This conclusion is robust with parallel trend test, placebo test, replacement of explained variables and other tests. Compared with enterprises funded by basic research, the enterprises with applied research funding have more scientific outputs. Compared with the broadly used method of policy evaluation -- difference-in-difference, the recent estimator -- synthetic difference-in-difference, has desirable robustness properties.