The Research Of Government Funding On R&D Investmentof China's Manufacturing Industry

Under the background of economic globalization,scientific and technological innovation is the strategic support to improve social productive forces and comprehensive national strength,and it must be placed in the core position of the overall development in the country.The manufacturing industry is the lifeblood of the national economy,at present,R&D investment in China's manufacturing industry increased year by year.But compared with some developed countries,China's development intensity is low,and China's R&D investment is still insufficient.In order to improve the manufacturing industry R&D investment and encourage business innovation research,it is necessary for the government to intervene through various policies.The government provides funding for manufacturing R&D investment,whether these subsidies are effective to promote the R&D activities of enterprises,to enhance the overall level of research and development,and what are the factors that influence the effect of government funding?At the same time,whether there is effect difference in different technical level of the enterprise,is the main problem of this article.This paper divides government subsidy into two ways:government subsidy and tax preference,and tax incentives are subdivided into direct tax preference and indirect tax preference,the paper mainly analyzes the nonlinear influence of the three kinds of policy tools for R&D investment in China's manufacturing industry.This paper collecting China's large and medium-sized manufacturing panel data of 28 industries during 2009-2015,using feasible generalized least squares method(FGLS)for model estimation,analysing the impact of government funding on R&D investment and the moderating role of intellectual property protection,enterprise scale,property rights type and industry technology level in the relationship between government funding and enterprise R&D activities in China.At the same time,in this paper,the manufacturing industry is divided into high technology industry and low technology industry,and research the government should how to choose the funding target and methods in different manufacturing R&D intensity of the industry,to improve the effectiveness of government funding to provide policy recommendations.The results show that the government direct subsidies,indirect tax preferences and manufacturing R&D investment have inverted U type relationship,direct tax preferences and manufacturing R&D investment have linearly positive correlation.And the higher the level of intellectual property protection,the greater the incentive effect of three kinds of government funding on R&D investment;The incentive effect of direct subsidy from non state owned enterprises is better;The subsidy effect of direct subsidy and indirect tax preference is greater in the enterprises with high technical level.In the empirical analysis of high technology industry and low technology industry,the effect of government subsidy in high-tech industry is similar to that of whole manufacturing industry,but the government subsidies and R&D investment in the low tech industry show twice growth patterns.And for the high technology industry,the incentive effect of government funding for non-state-owned enterprises is better,but for low tech industries,large scale enterprises and state-owned enterprises have better incentive effect of direct subsidies and direct tax incentives.According to the conclusion,this paper gives these suggestions:The government should increase the financial aid to non state owned enterprises.At the same time,for the traditional manufacturing industry and other low tech industries,the government should encourage large-scale enterprises,state-owned enterprises to launch R&D activities,and give more subsidies and tax incentives.Not only the government increase the proportion of R&D subsidies,but also gradually increase the proportion of indirect subsidies such as tax incentives,and reduce the possibility of government failure.In the process of policy implementation,the protection of enterprise R&D results is an important factor to stimulate enterprise R&D,and it needs our further improvement of intellectual property system.