A Study On Fiscal Incentive Policies Towards Firms' R&D Investment

For China has put independent innovation as a strategic guideline for future society and economy development, the R&D fiscal incentive policies which has a close tie with firms'technology innovation become a hot study issue to home's economists. The idea of study it comes out basing on this specific background. The purpose of the thesis is to estimate effectiveness of fiscal incentive policies towards firms'R&D investment by using empirical analysis method, and manage to give some useful reference when reforming relevant policies.Firstly , the paper concentrates on discussing theory of fiscal incentive policies towards firms'R&D investment, comparing differences and connections of two most important policy tools: financial subsidy and tax incentive, and analyzing their own effect upon firms'R&D investment, then summarizes the main estimate measures existing in literature, all above works will deepen our acquaintance to the policies, and pave the way for evaluating our country's fiscal policies. In the following section, we utilize the panel data collected in Large and Medium Industrial Enterprises from FuJian province , clarify effect the fiscal policies imposing on firms'R&D expenditure, some problems specified in former chapter are proved. After taking other correlative literature results into account, we extend the effect to nationwide, then two important conclusion was listed:1. The present financial subside system plays an active part in boosting FuJian firms'R&D investment, however, it brings an trend that the companies heavily rely on the direct of public policies like financial subsidy when they make R&D decisions, on the contrary, the market-oriented mechanism has little function .2. There are many problems remaining in tax incentive policies, it distorts the activities in firms'R&D, and haven't got incentive impact to R&D investment which it was expected to.Finally, with empirical results we did, from perspectives of some principles like strict definition for R&D,restricting the possible opportunism conduct,preventing fiscal revenues gained by foreigners etc, the thesis suggests to rectify financial subsidy structure,improve the tax preference policies on R&D and reinforce institution circumstance construction.