The Research On Fiscal Policies In Zhuhai On The Perspective Of Science And Technology Innovation

The competition of the present world is increasingly determined by overall nationalstrength dominated by economy and technology. Since the reform and opening up, China’seconomic development has made remarkable achievements. However, the market fortechnology strategy for economic development has resulted in enormous waste of resourceswhich seriously restricting the sustainable development of China’s economy. At the same time,China’s capability of independent innovation and technological development has failed toreach the expected target. Therefore, the transformation of economic growth andimprovement of the capability of independent innovation, become top priority. In2006, theState Council issued National Long-term science and Technology Development PlanningFramework which planning a grand blueprint for China’s science and technologydevelopment. In recent years, Zhuhai has made tremendous achievements in economy,technology and education as the core city in the West Bank of the Pearl River estuary whereasthe extensive mode of economic development does not change. The economic andtechnological development level is still not high. The limited capacity for independentinnovation and lower level of technological development become important factorsconstraining the sustainable economic development of the Zhuhai. The external nature ofscientific and technological innovation determines that it must be intervened and supportedby the public finances. From the perspective of promoting scientific and technologicalinnovation, this thesis focuses on the problems of policy and fiscal policy options in Zhuhai.Fiscal policy system is a complex project involving financial investment, taxexpenditures, government procurement and venture capital etc. In all aspects of promotescientific and technological innovation, how to select fiscal policy, how to determine theboundaries of roles fiscal policy and market mechanism played, how to effectively use various financial tools have become the focus of theoretical research. The existing fiscalpolicy in Zhuhai has played a positive role in promoting the development of scientific andtechnological innovation. However, owing to the lateness of the research in this area, it stillneeds certain targets and scientific improvement in the choice and formulation of fiscal policyin Zhuhai which means systematic analysis and perfection of the financial instruments andfiscal policy related to scientific and technological innovation. In this paper, it reviews thetheory of fiscal policy concerning scientific and technological innovation home and abroad;describes the status of and problems of fiscal policy promoting technological innovation inZhuhai; draws on the valuable experience of foreign countries and domestic advanced citiesand makes recommendations on the promotion of technological innovation in Zhuhai.However, researches on this field are not sufficient so that the fiscal policies supportingtechnology innovation is not mature. Therefore, systematic analysis should be carried out onfiscal policies and use of fiscal tools, which is based on Zhuhai situation, so as to help thefiscal policies work more effectively.This thesis focuses on the fiscal policies of Zhuhai, which support technologyinnovation, based systematic analysis on theories, both home and abroad, of fiscal policiessupporting technology innovation, and finds out that there are still many problems inZhuhai’s fiscal policies, which support technology innovation. These problems are as follows:the scale of financial input is small; the structure has to be refined; the managementinstitution of technology input is not formal; the fiscal investment is not sound; the mode ofgovernment purchasing is single and small in scale; the supporting measures of purchasingpolicies are imperfect; the function of stimulation of government purchasing is not workable;the scale of government venture capital which finances technology innovation is small; themechanisms of withdraw and risk-control of venture capital are imperfect; the operation ofventure investment is immature; tax expenditure for supporting technology investment is notobvious; tax incentive targets are offside or absent; tax expenditure cannot help spurtechnology innovation effectively; and finally, the use of tools of fiscal policies is lack ofsystematic.According to the problems mentioned above, this thesis studies the fiscal policies forsupporting technology innovation in some developed countries and some domestic cities.Based on these experiences, it gives some advice on Zhuhai’s fiscal policies for technology innovation. The recommendations as follows: First, to optimize the investment policy infinancial science and technology so as to improve the efficiency of budget funds usage;Second, to strengthen government procurement policies so as to strengthen scientific andtechnological innovation driven function; Third, to improve the risk-investment policy so asto strengthen the functions of the Government’s venture capital boot; Fourth, to improve thetax expenditure policies supporting the technological innovation so as to strengthen theincentive function of technological innovation; Fifth, to integrated application of fiscal policy,strengthening the weak links in the construction of scientific and technological innovation inZhuhai.