An Empirical Study Of The Impact Of Tax Incentives And Market Competition On Technological Innovation

Innovation-driven development and building an innovation-oriented country are the development strategies that our country has always insisted on.At present,the development of science and technology in our country is entering an important period of rapid growth.The total R&D expenditures and R&D investment personnel have maintained a steady and high-speed growth,but the overall R&D intensity is still lower than the average level of R&D investment in OECD member countries.And in the existing innovation and research and development,the formation ratio of intangible assets is low.How to increase the level of investment in technological innovation is the focus of current attention,and it is also a problem that this article should focus on.The existing research and statistical data show that the company is the main body of technology research and development.To increase the overall level of technological innovation,the key lies in improving the company's enthusiasm for independent research and development.Due to the inherent uncertainty and externalities of technological innovation,simply relying on the market to encourage companies to invest in R&D cannot achieve optimal levels.It also requires the government to support with policy-driven effects.The tax incentive policy is an effective government support tool that can effectively reduce R&D costs,improve the company's R&D capabilities and take risks,and encourage companies to invest in R&D.In addition,the market competition environment the company is facing will also have an important impact on its technological innovation decisions.On the one hand,companies are under pressure from market competition and urgently need to establish competitive advantages through innovative R&D.On the other hand,The high cost of R&D investment with risk,the fierce competition environment will further amplify the adverse impact of R&D risk on the company,and cause the company to reduce or even give up the short-sighted behavior of R&D.Therefore,this article combines tax incentives and market competition to analyze the impact of the two on technological innovation.This paper first reviews and summarizes the literature on the relationship between tax preferences,market competition and technological innovation at home and abroad,and expounds the related theories.Then,based on the theory of "market failure"," Schumpeterian hypothesis" and "Arrow model",the relationship between tax incentives,market competition and technological innovation is analyzed.Finally,the hypotheses are tested and some suggestions are put forward.In the design of variables,this article uses tax incentives and market competition as explanatory variables and technological innovation as an explanatory variable to analyze the effects of tax incentives and market competition on technological innovation.The technological innovation is taken into consideration from two dimensions of R&D input intensity and R&D conversion into intangible assets,namely the measurement of R&D expenditure rate(the new R&D expenditure/current term total assets),and R&D capitalization rate(the amount of intangible assets in the current period of R&D/the current new R&D expenditure).In view of the immediacy and universality of the income tax preferences on the object of action,the income tax preferential(statutory tax rate-the actual income tax tax rate)is chosen to measure the tax preferences.In the field of market competition,using the practice of most domestic scholars,the market competition is quantified by the company's competitive position(the main business income of the company/the total income in the industry)and the industry competition(HHI).In empirical tests,Taking the financial data of listed companies listed on the A-share Main Board of the Shanghai and Shenzhen Stock Exchanges as samples during the period from 2008 to 2015,a total of 2,904 data were obtained after excluding financial companies,missing values and outliers,and a linear regression model for tax incentives,market competition,and technological innovation was constructed..The results of the study found that:(1)Income tax incentives have a catalytic effect on R&D investment,and have no significant impact on the efficiency of conversion of R&D investment into intangible assets.(2)Industry competition will have a negative impact on the R&D investment intensity of listed companies and the ratio of R&D input to intangible assets.(3)The company's competitive advantage not only has no significant impact on R&D investment intensity,but also has a negative impact on R&D investment intangible assets.(4)The company's operating performance has a negative impact on the intensity of R&D investment,but it can increase the ratio of R&D investment to intangible assets.Combined with the empirical findings,the following recommendations are drawn:First,the tax benefit of income tax has an effect in boosting R&D investment in the company.The government should exert this positive effect,especially for small and medium-sized enterprises(R&D)and income tax,and lead the independent innovation of the company.In the case of the preferential tax treatment of income tax,concessions such as deduction of R&D expenses closely related to research and development activities and transfer of research results should be focused on the preferential treatment of vague tax rates.Second,the formulation of tax policies should take into account the degree of competition in the industry.More favorable policies should be given to those industries that are highly competitive and need technical support.Third,tax policy should be related to the company's business performance.Encourage companies with better performance to conduct R&D and improve the efficiency of R&D results.