The Effect Of Public R & D Subsidies On The R & D Input Of Enterprises

Research and development(R&D)activities and resulting innovation constitute an important driver of economic competitiveness and hence sustainable economic growth.Business R&D is a key indicator of the innovation performance of a country,meanwhile,without government intervention,the business sector would not invest the R&D amount that corresponds to the socially optimal level,since the scientific products have some characteristics of good public goods.Based on the background of the technological waves swept over the whole of global,how to provide sufficient private incentives to innovation and promote economic upgrading have concerned by scholars.Therefore,do government's R&D subsidies policies stimulate business R&D input? Government mainly used direct grants,tax incentives and public R&D investment in R&D organizations for support business-funded R&D,it is necessary to study the effect of incentive policies,including direct grants,tax incentives and public R&D investment in R&D organizations on the business R&D input.Based on the researches of domestic and foreign scholars,because of the characteristics of public goods,externalities,risk uncertainty and earnings uncertainty,government must intervene in business R&D activities.This paper uses the micro-structure theory to analyze the impact of direct grants and tax incentives on the business R&D input.And how the R&D organizations impact of business R&D input.This article chooses the provincial panel data of large and medium-sized industrial enterprises and their year-based data from 2009 to 2015 as the research sample.The main empirical analyses are as follows: firstly,in order to analyze the effect of industrialization level on government R&D subsidy effect,the dummy variable is introduced into the basic model in multiplicative form to study how the effects of public R&D subsidies are influenced by stages of industrialization.Then,study the influence of R&D subsidies objects choices on the effect of Public R&D subsidies.The main conclusions are: firstly,the effects of public R&D subsidies are influence by stages of industrialization,Public R&D subsidies in enterprises have positive and significant impact on business R&D input,and the effect becomes stronger and stronger with the enhancement of industrialization;secondly,public R&D subsidies in research institutions have a negative impact on business R&D input,however the effect of public R&D subsidies in universities on business R&D input is positive;thirdly,theavailability of funds,the income of enterprises and the number of R&D staff have a significant positive impact on R&D investment.Finally,business R&D input is the material base and precondition of R&D activities,in order to stimulate business R&D input,based on the related research conclusion,the paper proposes several advises: Firstly,policy makers in different regions should be based on the industrialization process of the region to make the region's R&D subsidies policy,government should continue to increase investment in science and technology,government must use of a variety of means to guide the community to increase R&D investment volume and intensity;Secondly,government should adjust and optimize the investment structure of government R&D funds to improve the efficiency of the use of scientific and technological funds;Thirdly,government should improve the R&D funding assessment and evaluation system;Fourthly,government should establish and improve financial support systems to reduce financing constraints of corporate R&D activities;Fifthly,government should actively improve the innovation environment of the region,increase the protection of intellectual property,and attract more high-level R&D staffs.