Analysis Of The Impact Of Tax Incentives On China’s Automobile Industry Science And Technology Innovation

As a pillar industry of the country,the automobile industry occupies an important position in the domestic economy and international trade.However,the internal and external environment of the development of the automobile industry has undergone significant changes in recent years.In terms of the external environment,China’s GDP growth rate fell to 6.6% in 2018,a record low since 1990.The slowdown in economic growth has a direct negative impact on the automotive consumer market.The growth rate of production and sales in 2017 has declined for the fourth consecutive year since 2014.In terms of internal environment,affected by the economic contraction,the number of new(expanded)investment projects in the automotive industry is limited,and the commercial vehicle market continues to operate in the downside.The overall situation is not optimistic.In such a large environment,the automotive industry has entered a critical stage of industrial restructuring and structural transformation.At this critical stage,the environment and resources of the automobile industry are increasingly constrained: lacking of core technology in local enterprises,the need to improve product quality,and weak independent innovation have become obstacles to the development of China’s automobile industry.However,due to the positive externalities,risks and uncertainties of technological innovation,it is necessary to use national policies such as tax incentives to promote enterprises to improve their technological innovation capabilities,thus contributing to the healthy development of the automotive industry.This paper first introduces the concept and characteristics of enterprise technology innovation,and clarifies the theoretical basis of tax incentives for enterprise technology innovation.It is precisely because of the positive externalities,risks and uncertainties of technological innovation of enterprises that they need the support of national policies such as tax incentives,and analyze the effects of tax incentives on technological innovation of enterprises from different tax categories.Secondly,this paper analyzes the current status and problems of technological innovation in the automotive industry and sorts out the current preferential tax policies for science and technology innovation in China.Thirdly,through the empirical results of the multiple regression models,the impact of the current tax incentives of different taxes on the technological innovation of enterprises is explained.Finally,according to the results of empirical analysis,in order to better play the tax incentives to promote enterprise innovation,the relevant policy recommendations are proposed from the perspectives of corporate income tax,value-added tax and personal income tax.