Fiscal Subsidy,Monetary Policy And The Enterprise Innovation Investment

In recent years,China has vigorously promoted the idea of innovation.In the globalized market with increasing competition,Chinese enterprises must improve their innovation ability as soon as possible,thus enhancing their competitiveness.Compared with developed countries,China's enterprise innovation still has a certain gap,One of the main reasons of the lack of enterprise innovation is the "market failure",so the government is necessary to intervene to the enterprise's innovation,promote enterprise innovation investment,improve the enterprise innovation performance,The fiscal subsidy policy implemented by the government is the most commonly used intervention.The most commonly used fiscal subsidy policy has two kinds,one is the direct government subsidy policy,the second is the indirect tax preferential policy.Due to some enterprises has certain rent-seeking phenomenon,so studying whether fiscal subsidy policy has incentive effect on enterprise innovation investment is very necessary,and to direct and indirect government subsidies of preferential tax both fiscal subsidy policy incentive effect is discussed and compared.In addition,monetary policy,as a means of macroeconomic regulation,can influence the activity of enterprises' investment and financing activities through interest rate and credit transmission mechanism.Fiscal subsidy policy and monetary policy are national demand management policy and macroeconomic regulation and control important tool,has certain close cooperation and coordination between the inevitable relation,it is necessary to impact on enterprise innovation comprehensive consideration of both.By sorting out the relevant literature at home and abroad,we found that there is no unified conclusion about the impact of government subsidies and tax incentives on enterprise innovation input.The existing literature rarely studies the impact of monetary policy on enterprise innovation,and few scholars consider the impact of fiscal subsidy policy and monetary policy on enterprise innovation.Through the review and analysis of the relevant theories,the existence of externalities,uncertainty enterprise innovation activities and the public is the main cause of the market failure,is the cause of the government to intervene.The credit transmission mechanism of monetary policy can effectively explain how monetary policy influences the investment and financing activities of enterprises by affecting bank credit.In this paper,the data of Shanghai and shenzhen listed companies from 2008 to2015 are used to study whether the incentive effect of government subsidies and taxincentives on enterprise innovation is present,and whether there are differences in their effects;Secondly,considering the influence of monetary policy on enterprise innovation,it is verified that the transmission mechanism of monetary policy is smooth at the micro enterprise level in China.Final inspection in different monetary policy environment,financial subsidy policy and the relationship between the enterprise innovation is changing,government subsidies and tax breaks in different monetary policy environment whether have different effects on enterprise innovation.Research results show that: First with the fiscal subsidy way,government subsidies and tax breaks for incentive effects of enterprise innovation,and government subsidies of incentive effect is greater than the preferential tax incentive effect;Second,the enterprise innovation input intensity is influenced by the monetary policy environment,and represents the communication of China's monetary policy transmission mechanism at the enterprise level;Third,government subsidies and tax incentives have different impacts on enterprise innovation in different monetary policy environments.