Government Subsidies,market Competition And R&D Investment

China's "13th Five-Year Plan" clearly put forward the implementation of innovation-driven development strategy.From the enterprise level,the implementation of innovation-driven development strategy is mainly reflected in the R&D activities.Enterprises' R&D activities are not only driven by the pressure of market competition,but also induced and encouraged by government subsidies.Therefore,market competition and government subsidy can be called dual motivation of R&D investment.However,due to the difference of market economy environment and research samples,the research on the impact of dual motivation on R&D investment has not reached unanimous conclusions at home and abroad.Then,what impact does the market competition have on the R & D investment in China under the current situation? With the increase in the intensity of government subsidies,does the recognition and oversight effect of government subsidy always produce incentive effect on R&D investment? Is the impact of dual motivation on the enterprise's innovation intention independent or interactive? What kind of role does property rights play in the impact of dual motivation on R&D investment?In order to explore the above problems,using the data of China's A-share listed companies from 2010 to 2015,this paper adopts the method of empirical research and normative research to analyze the relationship between market competition,government subsidy and R&D investment,and the moderating effect of property rights.First of all,domestic and international representative literature is combed and reviewed,and the related theory and system background of the research topic are expounded in detail.Secondly,the paper analyzes the influence mechanism of market competition and government subsidy on R&D investment,and points out the moderating effect of property right,and then puts forward the research hypothesis.Third,according to the research hypothesis of this paper,descriptive statistical analysis,correlation analysis and regression analysis are conducted on the sample,and the results were tested with robustness.Finally,based on the conclusions of the study,the paper puts forward relevant policy recommendations from two levels of government and enterprises in order to promote enterprise R&D and implement the innovation-driven development strategy.Through the above analysis and test,this paper draws the following conclusions: in China's current situation,the market competition has a positive effect on firm R&D investment,and the relationship between government subsidy and firm R&D investment takes on an inverted-U shape,in other words,it has incentive effect on firm R&D investment when the subsidy intensity is moderate,but it would lead to the crowding-out effect on firm R&D investment when the subsidy exceeds the optimal value.At the same time,when the market competition is certain,government subsidies will strengthen the positive correlation between the market competition and firm R&D investment.After further examining the influence of property rights,it is found that the market competition has a more significant effect on the R&D investment of the non-state-owned enterprises than the state-owned enterprises,and the R&D investment of non-state-owned enterprises is more sensitive to government subsidies.However,the R&D investment of non-state-owned enterprises is less tolerant of government subsidies,that is,the turning point of the inverted-U shape relationship between government subsidies and R&D investment in non-state enterprises is earlier.The conclusion of this paper shows that market competition has a positive effect on the innovation of Chinese enterprises at the present stage,so we should continue to deepen market-oriented reforms and give full play to the role of the market.Since 98.65% of the sample enterprises have not reached the optimal level of government subsidy of 0.0113,so the government can appropriately improve the R&D subsidies.Meantime,the government should develop a subsidy policy scientifically,strengthen supervision,give full play to the recognition and oversight effect of government subsidy.In addition,enterprises should also change short-sighted behavior,set up the concept of sustainable development,and implement the innovation-driven development strategy.