Promote Technological Innovation In China's Fiscal Policy

In the 21^st century, the Chinese government, facing the new situation at home and abroad, has made the decisive policy of adhering to scientific development taking a new road to industrialization, and put strengthening the power of technological innovation as the central link in adjusting industrial structure and transforming the style of economic growth. Due to the publicity, externality, uncertainty and risk of technological innovation, the marginal profit of private innovation is less than that of social innovation, which would lead to the unwillingness of more innovation in private industry and the shortage of social resource in innovation. It is the ineffectiveness of some aspects in technological innovation under market mechanism that results in the theory basis for government' s intervention in this field. Among government' s policy of encouraging technological innovation, fiscal policy is one of the most effective tools. Since the reform and opening-up, Chinese government has taken a lot of measures to promote technological development. However, compared with the developed countries and demand of constructing innovation-oriented countrries, the fiscal policy of China still has a long way to go and it has not given full scope to the role of technological innovation. Tax policy even hinders the technological innovation. Therefore, the study on fiscal policy of technological innovation is meaningful both in theory and practice, which is the very basis for the thesis.The function mechanism of fiscal policy in technological innovation mainly lies in the research and development in enterprises and other sectors. By financial technology investment, government purchase, tax privilege and other means, the fiscal policy both directly and indirectly...