The Incentive Effect Of Preferential Tax Policies On Small And Medium-sized Enterprises Technology Innovation In China

Small and medium-sized enterprises are numerous and account for more than 99% of the total number of enterprises in our country.Small and medium-sized enterprises make an important force in China’s economic and social development and play a significant role in promoting employment and social stability,etc.Small and medium-sized enterprises have made tremendous contributions to economic prosperity and development of the country.The 11th five-year planning proposals which are developed by the central committee of the communist party of China pointed out that we should enhance independent innovation ability of the enterprise.The 13th five-year planning proposals which are made newly points out that we should implement the strategy of innovation-driven development strategy furtherly and small and medium-sized enterprises are the mainstay of technological innovation.To carry out the 13th five-year planning proposals small and medium-sized enterprises should strengthen technology innovation capacity.Tax policy which is very popular in many countries is the most effective tool to stimulate technology innovation for SMEs.In recent years,the government has launched many preferential tax policies which are used to stimulate technology innovation for SMEs.It is significant for the improvement of preferential tax policies to evaluate whether preferential tax policies have an incentive effect on SMEs technology innovation objectively.This paper uses theoretical analysis and empirical analysis methods to analyze the incentive effect of preferential tax policies on small and medium-sized enterprises technology innovation.Meanwhile,this paper reviews previous scholars’studies on tax incentives and technology innovation by reading literature to understand the research status of domestic and foreign scholars’ research status of it,and analyzes the strengths and weaknesses of SMEs technology innovation activities,analyzes the mechanism of preferential tax policies to encourage the technology innovation of SMEs.This paper card preferential tax policies on SMEs and find that there are many problems of preferential tax policies on SMEs,such as turnover tax policies are insufficient,income tax preferential policies have deviations,human capital policies are insufficient and so on.This paper chooses two hundred and twelve small and medium-sized enterprises as samples which are listed in growth enterprise market and small and medium-sized enterprises board,then make regression analysis by SPSS and Stata software tools to verify whether tax incentives play an incentive effect on technology innovation of SMEs.The regression results indicate that income tax preferential tax rate can encourage SMEs to increase investment in technology innovation.However,the incentive effect of turnover tax preferential policies is not significant.This may be related to the fact that SMEs technology innovation tax incentives are mostly income tax preferential policies.The preferential income tax rate has a significant positive correlation with the yield of net assets.The preferential income tax rate also has a significant positive correlation with research and development investment intensity variable.Research and development investment intensity variable has a significant positive correlation with return on net assets when analyzes preferential tax rate variable and research and development investment intensity variable whether have an influence on innovation output.This means innovation investment variable plays an intermediary role in the process which tax preferential policies can increase innovation investment.Then this paper analyzes the relationship between income tax rate and return on net assets variable,further research find that their relationship becomes not significant.The regression results show that innovation investment variable is complete mediation variable in the process which tax preferential policies can increase innovation investment.