Monetary Policy、Income Tax And Enterprise R&D Investment

Innovation, as the fundamental driving force of economic development, is a core factor impacting a country’s economic competitiveness. Enterprise is the subject of a national independent innovation, in order to achieve rapid development of China’s economy, we must encourage enterprises to increase investment in scientific and technological innovation, and promote the enterprises to increase R&D investment and innovation output. Since the reform and opening up, R&D activities are increasingly subject to government and corporate attention, and R&D funding is increasing. But there is a big gap compared with developed countries.With the development of China’s market economy, a growing number of listed companies noted the importance of R&D investment, they put a lot of manpower and financial resources to carry out R&D investments. R&D investment has also attracted a large number of scholars to conduct academic research. The market can not provide enough R&D investment as the strong externalities of the R&D activities. Government, as the guide of R&D activities, macroeconomic policy formulation and policy incentives is extremely important. This article from a new perspective, explore the relationship between monetary policy and income tax and corporate R&D investment.In order to verify the monetary policy and income tax have an impact on R&D investment and if the increase of the amount of currency can ease financial constraints, we sort out the relative papers and introduce our corporate R&D investment Status. In this paper, the listed companies in Shenzhen Stock Exchange between 2008-2011 are the samples to study the effects of monetary policy and the tax burden on corporate R&D investment. In view of the special institutional background, empirical tests of this paper is divided into two parts, the first part includes all listed companies in the sample, the second part will be on the state-owned holding companies and non-state-owned holding company for testing.In this paper, through theoretical and empirical tests, we draw the following conclusions:(1) There is no significant correlation between money supply M2 and Innovation Investment, which may be of the monetary transmission mechanism is not smooth related. And increasing the money supply did not relieve corporate financing constraints, which may be due to our special institutional background. (2) To state-owned enterprises, the increase of money supply has a role in promoting R&D investment and can ease financial constraints to some extent. (3) corporate income tax level and R&D investment was a significant negative correlation, indicating that the lower the corporate income tax, the greater R & D investment intensity, indicating that policy incentives for business R&D investment is very stimulating. But the relationship between them in the state-owned holding enterprises and non-state-owned enterprises is different. Non-state-owned holding enterprise income tax and R&D investment was a significant negative correlation, but state-controlled enterprise income tax and R&D investment in the relationship is not significant. Finally, we suggest that, when making macroeconomic policies to promote the development of corporate R&D investment, we should consider the differences between state-owned enterprises and non-state-owned holding enterprises, be treated differently.