The Influence Of Government Support To R&D Investment

The global market is becoming more competitive recently,technological innovation is the core driving force for enterprise development,and even is the important factor to enhance the national competitiveness.However,the level of R&D in China is generally low,and there is a certain gap with the developed countries in the West.Enterprises as the main body of R&D must play an important role in taking the lead role.But the R&D is a long-term and costly project,and the process with privacy,uncertainty,and externalities makes it difficult for external investors to know more about R&D's details.R&D has high investment risk so that it is difficult to gain external financing.In order to support enterprises' R&D,the government has formulated a number of preferential and subsidy polices,such as the government give enterprises subsidies or a certain concessions in the income tax,to enhance confidence for R&D.These polices can ensure the continuous development of research and development activities.Based on the literature summary and theoretical analysis,this paper selects listed companies in 2008 and 2015,and validates the influence of government support on R&D investment financing.In this paper,the government support is divided into government subsidies and income tax concessions,and the financing constraints are divided into long-term and short-term,to study the government support for relieving financing constraints.This paper is from the perspective of long-term and short-term financing constraints,and at the same time from the government subsidies and income tax concessions to study and analysis problems.In addition,the sample is further divided into high-tech enterprises and non-high-tech enterprises,as well as is divided into specific industries.The results show that:(1)Government subsidies and income tax concessions has a significant role in the R&D investment.(2)In a certain extent,government subsidies and income tax concessionscan reduce the dependence of R&D investment on cash flow from operating activities,but the effect isn't significant.(3)Government subsidies can significantly alleviate the dependence of R&D investment on cash holdings and promote the stability and sustainability of R&D investment.The income tax concessions can also alleviate the dependence of R&D investment on cash holdings in a certain extent;but the effect is not significant.(4)By further research,we find that:compared to non-high-tech enterprises,government subsidies in high-tech enterprises can reduce the sensitivity of R&D investment on cash flow,and the effect is more significant.Among them,the effect of government subsidy in the information industry is the most significant,and the effect of income tax concessions in the biomedical industry is the most significant.(5)Compared with high-tech enterprises,government subsidies and income tax concessionsin non-high-tech enterprises can alleviate the dependence of R&D investment on the cash holdings significantly.Among them,the effect of government subsidy in metallurgical and mineral industry is the most significant,and the effect of income tax concessions in mechanical and electrical industry is the most significant.Based on the above research,the paper proposes the following recommendations,including that:the government should establish the unified disclosure of information disclosure systemto reduce the information asymmetry;the government should strengthen the prior investigation,and the management system to ensure the support of R&Dand the use of funds;the government take different R&D support efforts according to different Industry characteristics.At the same time the enterprises should strengthen internal capital management,and actively expand the financing channels.And ultimately the paper makes sure that the funds of government support really are used for research and development activities,improve enterprise R&D efficiency.