Impact Of Tax Incentives On Enterprise Innovation

The characteristics of uncertainty and externalities in innovation activities make it easy for enterprises to suffer market failure.In response to this phenomenon,the government adopts the means of tax incentives to adjust the market mechanism of enterprise innovation,and encourages enterprises to allocate innovative resources according to market demand.It is an important issue to study the effectiveness of the preferential tax policies,whether the tax revenue that the government gives up because of its support for innovation can be fully and effectively applied to the innovation of enterprises or not.At present,academic circles evaluate the effect of tax policy differently,mainly including "stimulating effect" and "crowding-out effect".The inconsistency of the research results indicates that there may be complicated nonlinear relationship between tax incentives and innovation.In addition,the research foundation focuses less on the role of innovation performance.Therefore,this paper mainly discusses the effect of tax incentives and innovation input and innovation performance from the performance and performance of tax incentives.First of all,selecting the large and medium-sized industrial enterprises in manufacturing industry from 2005 to 2015 as the research sample,establishing the panel data regression model to test the effect of the preferential taxation policies on the enterprises' investment,personnel input and innovation output;Secondly,examining the effect of tax incentives on the innovation behavior of enterprises with different scales,different industries and different property rights.Finally,it sets up a threshold regression model to test whether there is one or several threshold for the role of tax incentives in innovation input and innovation performance.The enterprise heterogeneity is taken as the control variable to test the extent and direction of the micro-enterprise's influence on the threshold effect of preferential tax policies.The research found that:(1)Within a certain range,tax incentives can encourage enterprises to invest in innovation funds and personnel to promote innovation performance improvement;(2)The role of tax incentives on innovation behavior is affected by the heterogeneity of the enterprise.Enterprise size and technology intensity can increase tax incentives for the role of innovation funds.The more the state-owned property rights,the more likely to squeeze out the tax incentives for companies to invest in innovation.(3)The bigger the scale,the more intensive technological innovation and the greater the profit of the previous year of the enterprise,the stronger the promotion effect of the tax preference on the innovation output.The increase of the proportion of the state-owned property right weakened the tax preference Innovation incentive effect;(4)There is a single threshold of 5.7% on tax incentives for innovative personnel input,that is,when the strength of tax incentives less than 5.7%,it can significantly stimulate the growth of enterprise innovation personnel.Also,there is a double threshold for innovation performance,the optimal policy intensity range is [0.96%,9.2%].It was found that firm heterogeneity can significantly affect tax concession threshold effect of the role of range and degree of influence.The research results test the effectiveness of preferential tax policies for enterprise innovation,and provide theoretical and practical reference for the formulation of government-related policies in our country,and provide suggestions for enterprises to make better use of government support for innovation.