Research On The Effect Of Government Subsidy On Innovation Input Of Enterprises Under Influence Of Market Structure

The development of new energy industry relies on government policy support.although many subsidy policies on wind power manufacturing have been introduced and the industrial market structure gets optimized,the innovation input of enterprises proves relatively insufficient.The research conclusions on the relationship between government subsidies and innovation input of enterprises have not been unified.Most of the previous studies only explore the direction and intensity of government subsidies on innovation input of enterprises,and pay less attention to government subsidy policies effects from the perspective of subsidy methods and market structure.Therefore,this paper takes wind power manufacturing industry as an example to explore the effects of different government subsidy methods on innovation input of enterprises,and analyzes different market structure factors that may affect the effects of government subsidies.Based on the empirical analysis,this paper proposes conclusions to promote the increase of innovation input of enterprises in wind power manufacturing industry and gives proper policy guidance,which is significant to the development of related new energy industries.This paper divides government subsidies into two types: direct government subsidies and preferential tax subsidies,and measures market structure in market power at the micro level,market concentration and entry barriers at the macro level.Then,we analyses the effect of government subsidies on innovation input of enterprises,and the mechanism under the influence of different market structure characteristics,so as to put forward theoretical hypothesis and verify the hypothesis through theoretical modeling and empirical analysis.In terms of modeling,based on the patent competition model,this paper explores the theoretical effect of government subsidies on innovation input of enterprises and the impact of market structure on subsidy policies.In terms of empirical analysis,wind power manufacturing is taken as an example and subdivided into four parts,blades,gear bearings,electrical equipment and wind turbines.Then,entropy weight method is used to calculate the comprehensive index of market power of wind power manufacturing industry and its four production links.Finally,we adopt fixed-panel and random effect model,as well as fractional regression,to verify the theoretical hypothesis.The results show that:(1)Direct subsidies and tax preferential subsidies for wind power manufacturing have a significant positive effect on innovation input of enterprises,and further the effect of direct subsidies is better than tax preferential subsidies.when the investment intensity of innovation input of enterprises is different,the effect of subsidy policy on innovation input of enterprises may be influenced.Specifically,the marginal promotion effect of government subsidy on enterprises with high innovation input is better than that of enterprises with low innovation input.(2)The relationship between government subsidies and innovation input of enterprises will be affected by market structure where enterprises live.Market power and market concentration can promote the effect of government subsidies on innovation input of enterprises.The higher the market concentration of enterprises,the greater the market power,then the more strongly the government's direct subsidies and tax preferential subsidies will contribute to the innovation input of enterprises.(3)The strength of barriers to market entry positively promotes the effect of direct government subsidies on the innovation input of enterprises,but the impact of that on the effect of tax preferential subsidies is not significant.The higher the barriers to market entry have,the stronger contribution of subsidies to innovation input of enterprises may be.The innovations point of this paper are mainly listed as the followings:(1)in terms of theory,starting from market power,market concentration and market entry barriers,we analyze the effects of government subsidies on innovation input of enterprises under different market structure characteristics,and make up for insufficient related theories in this field;(2)in terms of methods,the hypothesis is tested by economic modeling and empirical analysis.In terms of modeling,based on the patent competition model,parameters such as subsidies and market structure characteristics are included for theoretical modeling and numerical simulation.In terms of empirical analysis,the entropy weight method is used to fit the market power indicators,and through fixed panel,random effects and fractional regression model,we empirically tests the hypothesis of this paper.(3)In terms of practice,we verify the impact of the market structure from different perspectives on the effect of subsidy policy on innovation input of enterprises,and provides a operational guide for the government to formulate policies for promoting enterprise innovation at the government and market levels,which improves the target of policy implementation.