This study examines how the design and implementation of state subsidy programs shape firm behaviours and performances in China. Working with the Beijing Municipal Commission of Science and Technology, I investigate how random factors such as the gender composition of the evaluation committee, the temporal order of the review, and the seniority of committee members, influence a firm’s likelihood of receiving state grants. Furthermore, I examine the conditions through which small amounts of public subsidy grants may help boost firms’ survival rate and innovation activities.