Financial Subsidies,tax Preferences And Innovation Performance

Innovation is the first motive force in the development,in recent years,the enterprise has become the main force of innovation in our country.At present,our enterprise is in the midst of the fierce competition environment.The innovation ability of our country is relatively backward in the developed countries.The "market failure" is one of the main reasons for the backward,at this point,the government intervention is essential to the enterprise innovation.Government usually adopt financial subsidies and preferential tax policy to the enterprise's innovation,improving the innovation performance of enterprise and the whole innovation ability of our country,narrowing the gap between innovation with a developed country.So it is very necessary to explore the relationship between financial subsidies,tax preferences and enterprise innovation performance.The relating researches can not only enhance the level of our country enterprise innovation and indirectly promote the economic growth in China,but also provide reference for the innovation incentive policies of our government to implement.The first is to analyze the input and output of Chinese enterprises' innovation activities and point out the problems.For the R&D activities,the investment of total R&D is increasing,but the investment intensity is still less 3% to the developed countries.And the percentage of R&D expenditure in China's enterprises is too low,and there is still a downward trend.On the structure of R&D personnel,R&D personnel proportion is too high,more than 70%,and there is still an upward trend.The proportion of basic research and development staff is too small,less than 10%,and is still declining.In the view of innovation output,the proportion of accepting utility-type patent applications is declining but the applications of invention patent is on the rise.Enterprises accounted for more than 80% of total patent,while the other institutions is less than 20%.Secondly,Analysising the theoretical of financial subsidies,tax incentives and enterprise innovation performance.The main reasons for government intervention in enterprise innovation are the externalities,uncertainties and public nature of the technological innovation activities.Then,it introduces the ways of financial subsidies,tax incentives and innovation performance.According to the difference between the subsidy subjects and subsidies,Subsidies are divided into the central financial subsidies and local financial subsidies and according to the different forms of subsidies are mainly divided into interest subsidies and loss subsidies,subsidies in accordance with the different financial subsidies are divided into pre-subsidies and ex post subsidies.Tax incentives can be divided into two categories,direct and indirect benefits.Direct offers are mainly tax concessions,including lower tax rates,tax relief,etc..Indirect concessions mainly in the pre-tax concessions,the main tax deduction,accelerated depreciation,reserve system,tax credit,profit and loss offset and deferred tax and so on.There are two ways to evaluate the innovation performance of enterprises,one is based on single financial index and the other is performance evaluation based on multi-index.Finally,based on the basic economic theory,the author analyzes the relationship between financial subsidy and tax benefit.The Effect of Policy on Enterprise Innovation.At the end of the paper,in order to explore the fiscal subsidies and tax breaks to influence the innovation performance,and set to the appropriate model for empirical analysis.The researches show that:Inputing the research and development can improve enterprise innovation performance,but research and development personnel of innovation performance significantly influence applies only to the GEM listed companies.Subsidying is direct and effective to improve the whole enterprise innovation performance of the GEM and the main board.what is more,fiscal subsidy is also significant to the promotion of the GEM business performance,but the effect is not obvious to the main-board enterprise.The subsidy is more effective to the innovation performance of non-state-owned enterprises comparing with the state-owned enterprises.Tax incentive is indirect and effective for all sample and main-board companies,but it is not significant to promote the innovation of the GEM companies performance.Tax incentives play a positive regulatory role for R&D and innovation performance.