Research On The Effect Of Government Subsidy On Innovation Activities In Different Stages Of Household Appliance Industry

Enterprises are restricted by their own capital strength in the development of innovation activities,government subsidies have become an important way for enterprises to ease the pressure,and it has different effects on its technological innovation activities at every stage of enterprise development.China’s household appliance industry has experienced the stage of start-up,growth,and maturity in the developing process.And governmental subsidies in its different stages of innovative development have brought different degrees of effect.As a traditional household appliance industry,TCL Corporation has received high government subsidies for a long time since its establishment in 1981,which has played an important role in the development of the Group,but at the same time,it has a certain dependence on its internal innovation activities.In 2013,the TCL Company proposed and began to implement the "intelligent + Internet " transformation strategy,which has achieve certain achievements,while,profit and innovation performance instability issues appeared.Since its establishment in 1981.On the one hand,the government subsidy can reduce the capital pressure of the enterprise,which is beneficial to the development of its technological innovation activities,and on the other hand,it has hindered the innovation activity to a certain extent due to the extrusion effect.This paper try to explore how government subsidies play an important role in their innovative activities at different stages of the development of the enterprise,and the effect of the analysis in which stage is the most obvious,that is,the effect of the different stages through the case analysis.On the basis of the expounding the research and relevant theories of government subsidy and technological innovation,First of all,from the industry level,we collected the technological innovation activities of all listed home appliance companies in China in recent years and the status of receiving government subsidies.Based on the availability of data,we analyze the impact of government grants on internal technological innovation activities for companies currently at different stages.Then take TCL Company as the research object to research on the government subsidy’s specific role played in the stage of start-up,growth,and maturity how to act on its innovative activities,and then analyze the effects on governmentsubsidies.Through the research and analysis of the case,it is concluded that the government subsidy has different effects on the innovation activities in different stages of the TCL Group,and the effects in the growth period and transition period of the enterprise are unobvious,and the effect is significant in the initial stage and the mature stage.The influence of government subsidies on the innovation of enterprises mainly includes two aspects: direct and indirect influence,direct influence is mainly on its internal R & D cost,and indirectly through the influence of its innovation risk,financing constraints and investment decision-making and the last one-innovation activities.Subsidies in the innovation activities also caused negative effects such as innovation extrusion,innovation dependence and whitewashing financial statements,and finally gave policy recommendations to enterprises and governments.