A Study On The Leverage Effect Of Government Investment In High-tech Enterprises’ R&D Investment

As the carrier of the high-tech competition, high-tech enterprises made outstandingcontributions to our industrial structure adjustment and economic growth modetransformation. R&D inverstment is the source of the high-tech enterprises to gain corecompetence,but there is the phenomenon of “market failure”, only market mechanismscannot correct and that R&D incentives are needed to correct the market failure andencourage high-tech enterprises to increase R&D inverstment.The introduction-part of the thesis expounded the research background and thesignificance of the topic fristly, then gave the content and direction of the study afterunscrambled the foreign and domestic literature. The theoretical research part firstlymade a definition to the conceptions concerned in the paper, and form the fourcharacteristics of R&D inverstment: public goods attributes, externality, asymmetricinformation, high risk analyzed the necessity for the government to intervene the thenecessity for the government to intervene the high-tech enterprises’ R&D investment.Chapter three was current situation analysis of government R&D investment inhigh-tech enterprises’ R&D investment in our country. The empirical part using dataof,set up panel data model to examine the relationship of government R&D investmentand high-tech enterprises’ R&D investment. Considering the time-lag andindustrial-difference of the government R&D investment, we introduced lag(lagk=0,1,2,3) and industry dummy variables to the empirical model. Through the empiricalstudy, this thesis got the following conclusions:(1) government R&D funding crowd outthe high-tech enterprises’ R&D investment at the year that high-tech enterprisesaccpeted the government money, but the leverage was obvious when the lag is1,2,3years, the leverage effect is maximum when the lad is2years.(2) R&D tax incentivesunder four lags were have leverage effect to high-tech enterprises’ R&D investment,aslo reached the maximum when the lad is2years.（3）Compared these two policies,wefound that government R&D funding react more quickly than R&D tax incentives,butR&D tax incentives have a longer duration of action.