Abstract Based on the resource-based view and the signal effect, we explore the impact of different government R&D funding on the firms’ open innovation. This study uses the information of 6967 enterprises in Guangdong Province in 2013 by using PSM to control bias to explore the relation between the two. It is found that direct subsidy can effectively enhance cooperation based on science, market and purchase. Tax credits can only effectively enhance cooperation based on science. The policy mix is more effective on open innovation than the single.
