Research On The Effect Of Government R&D Subsidies On The Development Of High-tech Industry In Anhui

Innovation is the driving force to lead the development. Enhancing their technological innovation capacity, promoting high-tech industry development, improving the level of industrial development and accelerating the transformation of economic growth mode are key tasks for economic and social development of our country. During the 13th Five-Year Plan period, Anhui provincial government will try every effort to promote high-tech industry. R&D activities are the main driving force for the development of high-tech industry, and they need a lot of R&D investment. However, due to R&D activities with strong positive externalities, companies are usually unable to gain full access to R&D results. So it affect the enthusiasm of enterprise independent research and development. In view of this, the government is supposed to provide R&D subsidies to those high-tech industry for making up for the loss of business and reducing risk. Government R&D subsidies for the promotion of enterprises, it is essential to achieve the development of high-tech industry.In this paper, the direct government R&D subsidies of high-tech industry in Anhui are the research object, to investigate the effect of government R&D subsidies on the development of high-tech industry. Mainly from the investment of government R&D subsidies to the enterprise research and development and the innovation of the research and development activities of the enterprise output two points of view for research. First of all, the paper gives description and comparative analysis for the status of high-tech industry and government R&D subsidies in Anhui. Then using public data of Statistical yearbook of China’s high-tech industry (2010-2015) and the method of panel data analysis, I research the effect of government R&D subsidies for high technology enterprise’s R&D activity innovation output. And the writer chooses high technology enterprise patent application number and the new product sales income as innovation output indicators.The main conclusions of this study are these:1.Although in Anhui province high-tech industry R&D spending increased year by year, in which the government R&D subsidy and the enterprise own R&D input are increasing, but the overall size of funds for research and development input intensity is still in the middle level, and there is still a big gap compared with high technology industries developed areas.2. Government R&D subsidies for high-tech industry in Anhui measure to the intensity of enterprises’ R&D input intensity, found the decline in government subsidies strength, enterprise R&D input intensity is increasing. Through the literature research, this shows that the government subsidies on research and development activities to improve the enthusiasm of the enterprise independent research and development, thereby increasing the enterprise R&D spending. But compared with the developed eastern region, due to the high technology industry in Anhui province is still in the stage of development, also need to increase the strength of government subsidies. 3.Subsidies on high technology industry research and development activities in Anhui province are mainly concentrated in pharmaceutical manufacturing and electronic and communication equipment manufacturing industry the two advantage dominant industry, the aviation aircraft manufacturing, computer and office equipment manufacturing, medical equipment and instrument manufacturing subsidies less. 4.The empirical study shows that the high technology industry in Anhui province government direct subsidies for high technology enterprise’s R&D activity output have a positive effect. This shows that the governmentr R&D subsidies can promote enterprise independent innovation ability, enhance enterprise core competitiveness, so as to promote the development of high technology industry.Finally, according to previous research analysis, I put forward the corresponding policy recommendations:1.increase government R&D subsidies; 2.implementation of transparent management to government R&D subsidies; 3. audit government subsidies’ programs strictly; 4.intensify efforts to support the advantageleading industries; 5.cultivate new high value-added advantage industries.