A Study On China's Fiscal And Tax Policies For Innovation

As the human society entering into the 21st century, the world economy is taking some remarkable, even some fundamental changes. One of the important features of those changes is that the manner of the economy increase and the basic factors promoting economy increase are undergoing fundamental changes. In the classical economy increase, labor, land and capital are taken as the three factors to economy increase. However, the modern technological innovation economics basing on the Schumpetes technological innovation theory believes that technological innovation is the strong force to the new economy increase. In the running of modern economy, more and more evidence indicates that the effects of technological innovation on economy increase are more prominent than ever before, the prime mover to the economy increase of the 21st century is undoubtedly rooting in the advancement of technology. Although the technology advancement and innovation are actions essentially attributing to enterprises, it does not mean that the governmental effects on the technology can be omitted. Because technology advancement is the common foundation promoting the economy increase, boosting the technology advancement is one of the government functions. If government attaches great importance to technology for long time in the course of resource allocation, the technological innovation will be accelerated, thus contributing to the economy increase, to the enhancement of the national competitive force. Then a benign circle which means the inter-acceleration of technological innovation and economy increase can form. Hence each government attaches great importance to technological innovation. Secretary-general, Jiangzemin has emphasized the important significance of technological innovation. He definitely points out: "knowledge economy and innovation consciousness fundamental to the development of the 21st century." "Innovation is the soul of the progress of a people, and the endless driving force to the prosperity of a nation." " To meet the challenges of the rapid advancement of science and technology, and the flourish of knowledge economy, the most important is keeping on innovation." Although the Chinese enterprise attach more and more importance to technological innovation, the present conditions of our country is that the level of technological innovation is low, the ability of technological innovation is poor, the mechanism of technological innovation has not formed in most enterprises, most products has poor global competence. Except the historic factors, such as the long time effects of planned economy and scarcity economy, and the poor technological foundation, one of the important reason to the situation is the lack of the effective mechanism of technological innovation. Thus, how to design and formulate effective inspiring mechanism, and how to accelerate the enhancement of the ability oftechnological innovation, is the long and important goal of the economic policies of our country. As an extremely important part of such mechanism, fiscal inspiring mechanism can take the due effects.The research into the three factors contributing to the success of technological innovation from enterprises and the investigation into the three factors impeding the technological innovation on local enterprises show that capital, talented people , information and inspiring mechanism are the four key factors to the success of technological innovation. However, currently all the four factors have certain limitations, such as the scarcity of the investment on technological innovation. The lack of importance of the investment on manpower capital, and the lack of enough entrepreneur with innovation spirits, together with the scientific and technological talents; the incomplete establishment of modern enterprise system; the imperfectness of the inspiring mechanism to the enterprises and talented people undergoing technological innovation; the lack of enterprise information; the imperfectness of the incentive system for technology innovation. All t...