| Since 2009, when the concept of "experience China" was put forward, the Internet of Things(IOT) industry, as one of China’s strategic emerging industries, has got attention from all levels of government, which has seen this industry as an important driving force of economic development in their regions. To seize the initiative in the new round of information industry’s development, various policies and measures, such as tax incentives, setting up special funds, establishing industrial parks and especially the large subsidies, have been introduced to encourage and promote the development of the IOT industry. At the same time, with the economic development of our country entering the new normal period, the speed of economic growth has transited from the high-speed growth of the past to the medium-to-high speed growth now and the contradiction of industrial transformation and upgrading gradually highlights, so it is imperative to reform the "supply side". To adapt to the new development trend of the economy, government subsidies, as an important part of industrial policies, must make the corresponding transformation in the new wave of reform. Therefore, it is of great significance to study government subsidies whether play an active role, what extent plays to and how to play better in promoting the development of the IOT industry.On the basis of predecessors’ rich research achievements, this paper first introduces connotations of IOT and government subsidies, two major concepts involved in the research, and then expounds the theory of market failure, the industry life cycle theory, trade protection theory and the endogenous growth theory, which are seen as the essential theoretical foundation of the paper. Second, according to the current development of China’s IOT industry and the corresponding government subsidies, the paper describes the status of them, and then concludes some characteristics of them. Third, in order to explore the effect of government subsidies, taking 40 listed companies of Shanghai and Shenzhen two city IOT concept plate in 2009-2013 as samples, releasing annual reports of listed companies as a source of data, using fixed effect panel data model, the paper empirically test the effect of government subsidies to the total factor productivity(TFP) of listed companies. At last, to explore the cause of the effect in detail, the author using generalized matrix method(GMM) empirically analyze the role of government subsidies to R&D and its output of listed companies and the result also proves the effect of government subsidies on the TFP of IOT listed companies.Through theoretical and empirical analysis, the paper finds that the effect of government subsidies on the TFP of IOT listed companies is a double-edged sword, namely in current period it has a significant promoting effect-with every 1% government subsidies increase TFP rises 3.1237%, but in one year and two years later it has a significant inhibitory effect- with every 1% government subsidies increase TFP drops-4.7583% and-5.6667% respectively. Based on the results, combined with the current development of China’s IOT industry and the corresponding government subsidies, the paper finally analyzes the existing problems in the implementation of China’s IOT industry subsidy policy in detail, and discusses the principles of improving China’s IOT industry subsidy pattern, and on the basis of drawing lessons from the successful practical experiences of some areas, both at home and abroad, and similar industries, the paper puts forward specific countermeasures and suggestions of improving China’s IOT industry subsidy pattern so as to promote better and faster development of IOT industry in China. |
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