A Study On Fiscal Policies On Science And Technology Supporting The Large And Medium-sized Manufacturing Enterprises Towards R&D

Manufacturing industry is the mainstay of our national economy, whereas, the large and medium-sized manufacturing enterprises is the backbone of it. In China’s strategic economy restructuring, transformation and upgrading of production mode concern about the future of its manufacturing industry. Currently, with the new normal of China’s economy, bottleneck of domestic manufacturing industry has emerged distinctly. At the same time, China’s outstanding accounts in ecology have come into a concentrate period of payment, which imposed the burden of its ecological civilization construction. Under the backgrounds above, exploring new patterns and modes for public finance in supporting large and medium-sized manufacturing enterprises, promoting the strategic adjustment of economy and bolstering the new model of supply management in macroscopic control has significant meaning. This work tries to make scientific opinions and suggestions for optimizing patterns 、 modes and mechanism innovation of relevant policies through the study of theories and practices of public finance on science and technology in China.This work uses methods of academic literatures analyzing and cases analyzing, combs the existing achievements in this very field seriously, and researches the theoretical base and present situation for public finance in supporting large and medium-sized manufacturing enterprises. Conclusion shows the spread of positive externality of R&D cannot be controlled by enterprise itself. In the mean time, R&D is a high risk behavior which may also bring financial burden for enterprise. A huge loss may come after the failure of a R&D project, especially when the project is a basic or prospective one. As a result, for the enterprises, self-dependent innovation may be severely weakened if the outspread positive externality hasn’t been compensated. As the only conjunction between government and market, public finance system plays an important role in the governance of a modern state and the adjustment of macro economy. Supporting large and medium-sized manufacturing enterprises in their R&D spheres with scientific and efficient public finance policies is a meaningful measure for enhancing the top level subjects of China’s manufacturing industry.Further more, this work contains an empirical analysis with methods of descriptive statistics, correlation analysis, regression analysis and robust test based on the data of 121 large and medium-sized manufacturing enterprises from the year 2011 to 2013. The conclusions are as follows. Firstly, the enterprises’ achievements in R&D increase in direct proportion to the scale of subsidies from public finance sector; Secondly, the economic benefits calculated by ROA will increase sharply, whereas, as the subsidies goes on without disturbing, its economic benefits calculated by ROA will descend; Thirdly, compared with traditional direct subsidizing, indirect subsidizing likes technological reformation based on government-market co-governance mode has a better effect in promoting enterprises’ R&D.Because of the above study, the orientation of patterns and modes for public finance in supporting large and medium-sized manufacturing enterprises is a general inclination of enterprise, technical process, and at the same time, a conjunction with financial system. Considering some mature mode of indirect subsidizing in some industries, performance award, loan discount, premiums subsidy(.etc) should be the preference for future’s supporting. But the direct subsidizing mode however, as the stage of development is specific and the situation of global competitiveness is serious for domestic manufacturing industry, direct subsidizing mode such as project funds should not come into end entirely. In the future, this mode of subsidizing should be adopted under the principals of specific classification, applying to some special categories of manufacturing industries. Based on today’s practical conditions, strengthening the supporting to science and technology sphere, adjusting the direction and degree of fiscal funds on science and technology, improving the information system supporting the fiscal decision are feasible measures in consolidating the large and medium-sized manufacturing enterprises in the future.