Empirical Analysis Of Tax Incentives, Take The High-tech Bio-pharmaceutical Company For Examplet

In the face of the general trend of our scientific and economicdevelopment, all the major countries in the world have made the basicallysimilar strategic choice----taking scientific investment as their strategicinvestment. Because of the technological innovation’s features of beingpublic, external, unsure and risky, the marginal revenue of the innovationis less than the marginal social benefits of it, making corporationsreluctant to innovate and resulting in a lack of newly invested socialresources. With the deepening reform and opening-up, Chinese companieshave played a more and more pivotal role in the technological innovation.The amount of R&D investing has also been continuously reinforced.Inside such an environment, deeply researching into the encouragementimpact of R&D tax policies employed by our companies has significantreality meanings for us to make out reasonable tax-collecting policy andenlarge the influence of tax stimulus.In those evolving strategic industries, medicines, replacing energies, energy-saving cars and environmentally-friendly-related technologies andproducts will surge in the following five years. Bio-pharmaceuticals arethe center of the whole medical industry. In this text, with the help ofeviews6.0software and by the empirical analysis of the statistics from2008-2010coming from the bio-pharmaceutical industry in High-techenterprises, we get the result showed the relation between the corporationincome tax, the turnover tax and the corporation R&D investment. Theresults show that corporate income tax and corporate R&D investment arenegatively correlated, and the corporation turnover tax and R&Dinvestment are negatively correlated. In comparison, the turnover taxaffecting R&D investment of the enterprise is more significant than thecorporate income tax’s impact on R&D investment.Papers based on theoretical and empirical analysis, proposed that weshould change the main trend in the inceptives on corporation income taxto the turnover tax, and be equal to the corporation income tax andturnover tax; increasing the incentives of the R&D part; changing theincentives from the direct tax to the indirect tax; And considering the characteristics of R&D investment, the Government should implement afull range of incentives.