The Impact Of Local Government Supporting Enterprise's R & D In The Period Of Social Transition

Technology innovation is not only a way of life for enterprises but also a key factor influencing a country's economic development. The mainstream has largely explained that technology innovation is one of the main forces promoting economic growth. The enterprise serves as the main body of microcosmic economy, so its R&D are very important, especially during the time when our country upgrades and optimizes the industrial structure, changes the way economy grows and enhances international competition ability. However, in the process of technology innovation, spillover effects generate externality which results market failure and system failure, then enterprises can't gain all the benefits from the R&D, so it is appropriate for the government to encourage and support enterprise innovation. The government should actively intervene in the innovation policy and system to compensate the shortage of market stimulation. Nevertheless, the government may crowd out enterprise's R&D, so the key lies in how to grasp the right degree. Now China is in the period of social transition, competition and collaboration are in together among local governments, therefore, analysing the impact generated when local governments encourage and support enterprise innovation has very strong theoretical and practical significance, which can guide the government invest effectively and make sure the enterprise generates R&D strategies positively.This article reviews and compares how governments home and abroad support enterprise innovation specifically, then summarizes the general form governments involve in enterprises'R&D. Meanwhile, according to the analysis of our country's policy, we generalize governments'behavioral characteristics under the context of the transitional economics in China, in which the regional distribution imbalance is a serious problem. This kind of imbalance lies not only between East China and West China but more among each province. Based on the mechanism of the three stages scientific research and transformation, we use the panel data to analyze each province's scientific input empirically. Results show that the efficiency of scientific input and output among each province are different. Besides, there are some obvious short boards which almost caused by local government's scientific input behaviors. The most outstanding performance of these short boards is enterprise changes its R&D strategy when local government changes scientific input and policy direction. According to the comparison of scientific encourage policy among East China, Central China and West China, we confirm that gradient regional economy strategy influences the efficiency of the province's R&D input remarkably, we also find that when there is no significant difference among locational factors, even if the internal efficiencies of East China are quite different, the government support is likely to influence the enterprise's R&D.How the government scientific input influences enterprise's R&D strategy and behavior becomes the further research. Based on the condition of industrial cluster, we start with accumulative total innovation which fits the current status and has practical significance the most, construct the microcosmic games model of enterprise R&D input, and use the model to analyze intrinsic motivation how the government change enterprise's R&D by scientific input. Then we refine the literatures about concrete variables, and finally establish logical model of local government's R&D input influencing enterprise's R&D behavior. Here's the research hypothesis:local government influences enterprise's R&D behavior directly or indirectly by a series of means, these influence has both positive and negative excitation effects. And different policies can produce synergies.Hypothesis needs to be tested by empirical methods, corporate's research and development behavior supported by government is difficult to be measured using open data econometric models, it can only be measured by behavior rating scale of large samples and case studies of small samples. By questionnaire survey to typical industrial clusters area in Zhejiang Province and using Stata software to conduct quantitative analysis, the basic conclusions of the earlier stage of this study have been mainly verified. Effective association of final performance and specific measures of government support of corporate's research and development investment eventually arrive at the expected results. At the same time, this study also used the historical method of analysis to conduct a survey analysis about the typical home appliances industry of Cixi City in Zhejiang Province. By detailed analysis of Cixi household appliance industry background and government support behavior, we have dissected the typical R&D behavior of leading enterprises and proved the basic conclusion of this study once again from the dimension of small samples and thus enhanced the reliability and validity of the empirical study of this research.We have found that the ex-ante and ex-post policies of current direct government support for R&D in China have reflected the incentive effect. Crowding-out effect is mainly appear in the financing support of indirect support and information sharing platform as the two aspects have crowding-out effect to corporate's R&D inputs and outputs. The construction of information sharing platform only have incentives in the enterprises'output of patent, and have obvious inhibiting effect to the investment in R&D and final output of innovative products. In addition, our empirical study found that government support cooperation between enterprises and government R&D tax incentives afterwards have a certain synergy.Undoubtedly the empirical results strongly show that the work of the government's indirect support needs improvement in many aspects, particularly in the government financial support and information platform, which are two areas supported by the government indirectly. The synergy between government support cooperation between enterprises and government R&D tax incentives afterwards shows that to encourage and strengthen cooperation between enterprises R&D results, it's necessary for the government's tax incentives afterward and also needs to emphasis the two support ways to play the role of motivation together. This paper's study is of practical significance under the background of China's reform and transformation and industrial cluster restructuring and upgrading:First, the local government's procurement of government technology-related industries have not been taken serious by the subjects of related industries, government procurement mechanism needs further improvement; the government's ways and means of supporting R&D remains to be improved effectively. Second,the current government policy in support of science and technology have crowding-out effect to both research and development of enterprise in the aspects of financial support and sharing of information platform. It requires every government department to carry out a reasonable R&D capital financing activities, establish a fair and orderly financing platform and the enterprises should be treated equally, and even give greater priority to the SMEs. The construction of public information platform of industry cluster needs the government to optimize assessing mechanisms and not only take the construction of information platform as an image projects, they should deeply understand the benefits and advantages that public information platform bring about to the enterprises.Third, Government support for R&D should try to use the "combined way", the single support policies do not necessarily have a very good effect of supporting. Thus should combined the policies as far as possible from the time dimension and space dimension to enhance the motivation function of government's technology policy and reduce the negative crowding-out effect.As a trial study, this study also exists space to be further expanded:First, in the analytical process of the behavior of local government, the local government's utility function still haven't carry out quantitative analysis, especially the behavior of Chinese local government in transition yet needs to be further studied.Second, in the analysis process of innovation strategy, still lacks a systematic collection of ideas, in particular the lack of a typical case corresponding to each set, so that it will be of more practical significance to the local governments and enterprises.