The Impact Of Preferential Policies On Enterprise Income Tax On Technological Innovation In China

With the deepening of China's economic development,reform and opening up,our country and the world's major power in the increasingly fierce competition in an invincible position,then you want to,our country will vigorously promote technological innovation,so as to promote the progress of science and technology,promote the overall development of China's economy,has achieved a leading position in the international competition.Technological innovation of enterprises is an important part of technological innovation in China,but due to the public,external and uncertainty factors,the development enthusiasm of enterprises will be limited.Then,the government preferential tax policy is an important and common means in the process of enhancing the independent innovation of enterprises.The biomedical industry is known as the "never fading" sunrise industry".With the deterioration of living environment,the change of people's health concept and the aging process of population,the demand for health care in the world continues to grow after entering the twenty-first Century.According to the statistics report of the world's largest pharmaceutical market consulting firm IMS Health,the compound growth of global pharmaceutical market sales will keep 5%-8% in the next few years,which reflects the overall growth trend of global pharmaceutical market strong.Bio pharmaceutical industry is the third largest industry after the automobile and machinery manufacturing industry.At present,governments all over the world attach importance to the development of biomedicine,vigorously foster innovative biomedical enterprises,and cultivate them as a new economic growth point.China is also the key choice of biopharmaceutical industry as well as strategic emerging industries in china.Based on the research background,this paper takes the biopharmaceutical industry as an example to study the influence of the preferential policies of enterprise income tax on the technological innovation of enterprises.Based on the research of scholars at home and abroad,this paper analyzes the necessity of government intervention in enterprise technological innovation from the endogenous economic growth model and market failure theory.At the same time,it also analyzes the current situation of R & D in China,the gap between R & D investment between different countries,and the present situation of R & D of Biopharmaceutical Enterprises in china.Then,using the balance panel data of 2005-2016 years Biopharmaceutical Enterprises,a double difference model is constructed to carry out empirical analysis to prove the relevant hypothesis.The empirical analysis of this paper mainly includes: first,considering the purpose of using the double check model is to put forward other non policy factors;therefore,to test the applicability of the relevant data.Then,the paper introduces the policy dummy variables,time dummy variables and interaction items to examine the effects of the preferential tax policies on R & D investment and R & D output of enterprises.Then in order to analyze the influence of total revenue level of corporate R & D input and output,the enterprises are classified,in order to study the total operating income in different scale enterprises,R & D input and output.The following are the main conclusions: first,enterprise income tax preferential policies for enterprises R & D investment has a significant positive correlation;second,the enterprise income tax preferential policies for enterprises R & D output has significant positive correlation;third different operating income scale,business income of the enterprises better,its R & D investment and R & D output also good,operating income in poor enterprises even to a certain extent,have a negative impact on the R & D input and output.Finally,R & D investment and R & D output is an important symbol to measure the technological innovation capability of enterprises.According to the relevant conclusions drawn from empirical analysis,relevant policy recommendations are put forward.First,China should continuously optimize and perfect the structure of income tax,increase the proportion of preferential income tax,and promote fair competition among enterprises.Second,the government should provide a better business environment for enterprises,because enterprises have very high management risk and uncertainty in the process of development;the government can consider to provide better protection for enterprise financing,so that enterprises obtain more funds,reduce or even avoid the technology spillover differences between enterprise and social optimum output bring the inexhaustible impetus to the research and development activities have made these enterprises.Third,establish and improve the effect evaluation mechanism of income tax incentive measures,and do a good job in the amount of tax expenditure and the taxpayer's R & D spending supervision.This mechanism can evaluate the effectiveness of policy implementation for a period of time,so as to better formulate effective tax incentives,and promote the R & D investment and R & D output of enterprises.Fourth,the introduction of relevant supporting measures,increase financial subsidies,and improve the tax policy to encourage innovation of scientific and technological personnel,so that enterprises of different sizes can be fully developed.