Study On The Effect Of Government Subsidies On R&D Investment Of Strategic Emerging Industries

The report of 19 th CPC National Congress pointed out that innovation is the first driving force for development and the strategic support for building a modern economic system.Strategic emerging industries plays as an important role for our government to realize the economic development mode from “investment driven” to “innovation driven”,its innovation activities have the property of public goods.In order to solve the insufficient investment of R&D resulting from risk,uncertainty and spillover of technology in the development of strategic emerging industries,it is necessary for the government to intervene in market timely to correct market failure and promote effective allocation of innovative resources.Government subsidies,as the main way of government intervention in the market,are the main means of financial support for strategic emerging industries in their budding and growing period.Therefore,the study of the impact of government subsidies on R&D investment in strategic emerging industries is conducive to optimizing the efficiency of government subsidies in the R&D investment in strategic emerging industries,and providing a theoretical reference for the correctly handling the relationship between the government and the market.This paper combs the theory of technological innovation,the theory of market failure and the theory of government intervention,analyzes the current situation and existing problems of the government subsidies and R&D investment in strategic emerging industries,and selects 336 listed companies in Shanghai and Shenzhen stock market in the period of 2012~2016 as the research samples,and empirically tests the impact of direct subsidies and indirect government subsidies and the investment of R&D in strategic emerging industries by using the fixed effect model.The interaction of enterprise size,property rights and direct government subsidies and government indirect subsidies are introduced into the model to study the influence of government subsidies on the R&D investment of strategic emerging industries.And the comparative analysis between Energy and high-end equipment manufacturing enterprises were carried out.The results show that the government direct subsidies and the government indirect subsidies have a significant role in promoting the R&D investment in strategic emerging industries,but the incentive effect of indirect subsidies is stronger.At the same time,the incentive effect of government subsidies is also different from the scale of enterprises and the property of property rights.Based on the analysis above,we put forward suggestions to enhance the effectiveness of government subsidies for R&D investment in strategic emerging industries.