An Empirical Study On The Relationship Of Government Subsidies And High-tech Research And Development Investment

The competition has become the theme of the world with the speeding up of economicglobalization, the competition of global enterprise has entered the high-tech competitionperiod，the high-tech is the key to improve competitiveness. The competition betweennations is, in essence, technology and talent. However the innovation is the premise to gaincompetition advantage. The innovation of our nation not only replies on national office,institution, but also depends on the enterprise. The innovation of the enterprise needs tocarry out research and development activities, the R&D activity has characteristics ofpublic goods as well as its own factors, which will lead to “market failure” and make theR&D activity cannot go smoothly. So it need the participation of the government, thegovernment has a lot of money flow into the enterprise and provide funds for R&D activity,while what kind of role these funds play, whether they promote the R&D activity as thegovernment expected or restrain the R&D activity, which is the topic of this article. Thearticle is divided into four parts.In the first part, an introduction is presented to introduce the research background,meanings, methods and thoughts of the paper.The second part, which lays the theoretical basis of the research, include of definingthe concept of high-tech enterprise, government subsidies and so on. Next, we analyze themechanism of the substitution effect, extrusion effect, leverage effect from view ofEconomics. Finally, we state the reasons of these three effects.The third part is the core part of this article, this part is divided into two small parts,firstly, using the data from2008-2012of high-tech listed company to construct C-Dproduction function model and then using empirical method to verify the influence ofgovernment subsidy to R&D of the enterprise. Nextly, the high-tech enterprise is dividedinto electronic industry, information technology industry and biological medicine industry,for each industry, we do descriptive statistics and regression analysis.The fourth part is the conclusions and policy recommendations, in view of the aboveresearch results, we come to the conclusion and puts forward policy recommendations forgovernment involvement in enterprise R&D spending.