Research On Social Fiscal Policy For Policy For Promoting Small And Medium Sized Enterprises Autonomous Innovation

Innovation is the lifeblood and soul of socio-economic development. Constructing an innovation-oriented country is a major strategic decision made by the CPC Central Committee and the State Council while grasping the overall situation in the world and looking into the future. Autonomous innovation is of great significance for comprehensively implementing the scientific viewpoint of development, promoting economic growth and optimization of the industrial structure and improving social innovation capability. Enterprises are the mainstay of autonomous innovation. Small and medium sized enterprises (SMEs), which account for the majority of all the enterprises, are an important component of the national innovation system and an important innovation force. In recent years the important role of SMEs of promoting economic development has been generally recognized by all countries. It has become common practice in all countries to attach great importance to the development of SMEs and to elevate it to a strategic level. Similarly in China, after 20 years of reform and opening up, SMEs are also increasingly become an important economic component. At present, SMEs account for 99% of all enterprises in China, which employ about 75% of urban and rural labor, and the added value accounts for approximately 60% of GDP and the taxes around 40%. Thus the SMEs have played a pivotal role in the national economy. After five years into the WTO, we are facing increasing foreign competition in the market. Therefore, vigorously developing SMEs and enhancing their innovative ability and competitiveness are imminent.In view of SMEs'major role in the socio-economic development and the existence of market failures in the process of enterprises autonomous innovation, it's difficult to encourage SMEs to innovate independently simply on the basis of the market allocation of resources. Thus the government's macro-regulation and control in this area, with tax policy the most important macroeconomic tools and means, will undoubtedly have an important role for the promotion of autonomous innovation of SMEs. However, although a series of finance and tax policies since the reform and opening of China has played a positive role on the technological innovation of SMEs, on the whole our existing finance and taxation policies supporting SME autonomous innovation are merely embodied in individual taxes or preferential policies, and we haven't formed a system of finance and tax policies which is directed towards SMEs'characteristics and runs through the entire process of innovation. In this paper, on the basis of defining SME and autonomous innovation connotation, borrowing ideas from foreign governments'experiences in using taxation policies to promote SMEs autonomous innovation and referring to SMEs'policy demands in the process of autonomous innovation and China's current supply of policies in this respect, the writer puts forward some proposals of perfecting the system of finance and taxation policies for promoting SME autonomous innovation, namely: Aiming at the SMEs'characteristics and needs of policies in the stage of research and development stage and industrialization in the process of autonomous innovation, respectively refine and develop the relevant finance and taxation policies, thereby creating a more comprehensive finance and taxation policy system of promoting SMEs'autonomous innovation.