Empirical Research On Relationship Among Government R&D Direct Funding, Tax Incentives And Innovation Capability Of High-tech Enterprises In Xinjiang

The R&D activities are not only the basis of forming high-tech enterprises’ innovationability, but also the key to improve the core competitiveness of enterprises. The high-techenterprises in china can be traced to the1950s.Over the years, the rapid development ofhigh-tech enterprise makes the importance that has been further enhanced in the nationaleconomy. But, the innovation capacity of high-tech enterprises in Xinjiang, whether R&Dinvestment or in the output of innovation and R&D investment from the government are stillinsufficient. In comparison with the five northwestern provinces and the average level ofchina’s provinces, Xinjiang high-tech enterprises’ innovation inputs, outputs and governmentsupport still have a large gap. In addition, due to the publicity, outside and risks of R&Dactivities characteristics, the social benefits of R&D activities that bring are greater than theirown benefits. The uncertainty and un-exclusive R&D income a stumbling block to innovationactivities, which provide a basis for the government R&D investment, and thus the guidingrole of government in innovation activities is increasing more and more important.This paper conducts high-tech enterprises’ in Xinjiang innovative ability research andget data through questionnaires, and analyze the basic status of high-tech enterprises’innovative capacity in Xinjiang. What is more, we select high-tech enterprises’ innovativedata and establish linear function and logarithmic type of Cobb-Douglas production functionmodel. We Use SPSS19.0statistical software conduct the empirical analysis about theimpacts of government R&D investment on high-tech enterprises’ innovation capacity inXinjiang. The main way to analyze how government R&D funding play a role on thehigh-tech enterprises innovation input and output is directly government funding and indirecttax concession.The results show that direct government R&D funding can generate a significant positiveincentive on high-tech enterprises’ R&D funding, corporate R&D personnel, new productrevenue. And, tax breaks have significant positive incentives on high-tech enterprises’ R&Dfunding, corporate R&D personnel, royalty income, and new product income. Finally, wepropose policy recommendations to promote and enhance high-tech enterprises’ innovationability.