Research On The Optimization Of Fiscal And Tax Policies For Stimulating SMEs' Technological Innovation

The report of the 19 th national congress of the communist party of China(CPC)pointed out: China will accelerate the building of an innovation-oriented country.Innovation is the primary driving force for development and the strategic support for building a modernized economic system.We should aim at the frontiers of science and technology in the world,strengthen basic research,and make major breakthroughs in forward-looking basic research and pioneering original research.We will deepen reform of the scientific and technological system,establish a system of technological innovation featuring enterprises as the main body,market orientation and in-depth integration of industry,academia and research institutes,strengthen support for innovation in small and medium-sized enterprises,and promote the transformation of scientific and technological achievements.On August 20,2018,vice premier liu stressed at the first meeting of the state council leading group for promoting the development of small and medium-sized enterprises that small and medium-sized enterprises have contributed more than 70 percent of the country's innovation,confirming the important role of small and medium-sized enterprises in innovation.The party and the state have fully recognized the important role and outstanding contribution of SMEs in scientific and technological innovation.At present,China's economy has turned from a stage of high-speed growth to a stage of high-quality development.The country is in a transitional period of eliminating outdated production capacity and promoting the modernization and upgrading of the service sector.In terms of the external environment,the impact of the China and U.S.trade trade has put too much downward pressure on China's economy.Innovation is the key to successfully realizing China's transition from a middle-income country to a high-income country under the condition of unprecedented complexity.As the industrial revolution enters the 4.0 era,various countries,in order to seize the innovation highland,have issued policies to support the innovation of small and medium-sized enterprises.How to stay ahead in the global environment of increasingly fierce innovation competition in China is the key to formulate scientific and reasonable fiscal and tax policies to promote technological innovation of enterprises,especially various preferential policies for innovation of small and medium-sized enterprises.What are the key points of various fiscal and tax preferential policies to promote smes' innovation? What the role of the policies should play? What are the current fiscal and tax preferential policies to promote enterprise innovation in China? What are the functions of the policies? What are the policies' problems? How the policies should be combined and optimized? What are the differences in the effects of policies on the innovation of small and medium-sized enterprises with different life cycle stages,different regions,different property rights,different scales and different ownership concentration? How to optimize policies and realize the overall planning,coordination? How to make the policies with more accuracy? The above problems are this article try to solve.In order to explore the relationship between China's fiscal policies and preferential tax policies and the technological innovation of small and medium-sized enterprises.This paper applies the methods of qualitative analysis and quantitative analysis.On the basis of reviewing and combing the existing literature research,the research is carried out along the main line of theoretical basis-current situation analysis-theoretical model-empirical test.First of all,the theoretical basis of this paper mainly includes schumpeter's technology innovation theory,relevant theories of information economics,such as information asymmetry,screening theory and externality theory.Secondly,the analysis of the enterprise innovation status includes two parts.The first part is divided into five parts: the overview of global overall innovation,the comparison of innovation situation between China and major countries in the world,the description of overall innovation situation in China,the innovation status of industrial enterprises above the scale in China and small and medium-sized enterprises.In the second part,on the basis of sorting out the fiscal and taxation policies supporting the technological innovation of small and medium-sized enterprises in China,the problems and deficiencies of fiscal and taxation policies are analyzed.After the analysis of the current situation and problems,it is the vital part for the international experience of this paper,including the experience and practices of developed countries such as the United States,Germany,Japan and emerging markets such as South Korea,and India.In the theoretical model part of the paper,two hypotheses are proposed.The first is that fiscal policy and tax policy positively promote the technological innovation of smes.The second is that the effects of fiscal policies and tax policies on technological innovation of smes are different.On the basis of theoretical models,this paper examines the incentive effect of fiscal and taxation policies on smes' innovation,mainly including two aspects.Firstly,based on the theoretical model of Budd et al.(1993),it studies the total effect of fiscal and taxation preferential policies on smes' innovation incentive[105].Secondly,based on the theoretical models of Helm,Schottner(2005)and Kilponen(2007),the influence of specific fiscal and taxation policy tools on smes' innovation is refined.The results show that: tax incentives and fiscal subsidies can significantly promote SMEs to increase their R&D expenditure,effectively reducing production costs and improve output.The effects of fiscal policy subsidies and tax incentives will show heterogeneity under certain conditions[129][138].Finally,the empirical part of the article establishes a reasonable empirical model.The research sample of the empirical model are the companies of the National Equities Exchange and Quotations from 2007 to 2017,taking the enterprise receives each year's tax return lines to measure corporate tax credit and the company's financial statements in detail "non-operating income"-government subsidies amount to measure enterprise by the fiscal policy of preferential.Especially,the government subsidies in accordance with the detailed items,excludes government subsidies which has nothing to do with research and development.The empirical results are as followings.The first one is tax incentives and government subsidies do promote the technological innovation of SMEs in China.The second one is there are differences in the promotion effect of tax incentives and government subsidies on technological innovation of enterprises.In addition,this paper also studies the enterprise heterogeneity from five aspects including the nature of enterprise property rights,enterprise regional attributes,enterprise different sizes,enterprise ownership concentration degree and enterprise life cycle.Finally,according to the conclusions of this paper,we put forward feasible and scientific policy recommendations.Possible innovations of the dissertation:Firstly,to be different from most a-share listed companies in China or those listed on the SME board and GEM as the research objects,this paper selected the companies listed on the NEEQ from 2007 to 2017 as the research objects to study the effect of fiscal and tax policies on technological innovation of smes.The number of listed companies on the small and medium-sized board and the GEM is relatively less than that on NEEQ.Part of the study used the survey data of small and medium-sized enterprises in a certain region.Considering the representativeness and authenticity of the data,the data of NEEQ listed companies are relatively more reliable.At the same time,the patent data of NEEQ listed companies are collected manually by consulting each company's annual report and comparing with the patent data of enterprises of the state intellectual property office to ensure the authenticity and reliability of the data.Secondly,we do research on the impact of fiscal policies and tax incentives on technological innovation of SMEs simultaneously.Especially for NEEQ listed companies,most of the existing studies focus on one aspect,such as the impact of tax burden or fiscal subsidies on technological innovation of enterprises.At the same time,this paper studies the influence of tax incentives and government subsidies on technological innovation of enterprises.The empirical test not only finds that government subsidies and tax incentives have significant positive promoting effect on technological innovation of small and medium-sized enterprises.Government subsidies and tax incentives have different promotional effects.Thirdly,this paper studies the effects of government subsidies and tax incentives on technological innovation of SMEs at different life cycle stages.Most of the existing studies on enterprise life cycle are focused on a-share listed companies,and few studies on policy effects in different life cycle stages are carried out on small and medium-sized enterprises.This paper hopes to divide the life cycle of NEEQ sample enterprises to study the policy effects in different stages,and enrich relevant studies.