Research On The Influence Of Subsidies And Credit On The Technological Innovation Model Of The Small And Medium Private Enterprises

Enterprises need financial support to innovate.Subsidies and credit are beneficial to alleviate the financing constraints of the small and medium private enterprises.But due to the limitation of the size and the political status,the enterprises often rely on the imitation innovation,relatively be insufficient of the independent innovation.Therefore,it is necessary to study the characteristics of the innovation of the enterprises and the effect of the subsidies and credit on the innovation model of the enterprises.Firstly,the paper studies the characteristics of technological innovation in the small and medium private enterprises,and constructs three channel elements--R&D capital,human capital and technology spillover effect.Through the correlation test and Granger Causality test,the paper analysis the promoting effect of subsidies and credit on the inputs of the channel elements.Secondly,it proposes that subsidies and credit could influence the transformation of technological innovation model through above channel elements.Then,taking subsidies and credit as threshold variables respectively,the paper constructs a panel threshold model,with three channel elements as inputs and innovation achievements as outputs to figure out the threshold effect of subsidies or credit through the inputs.Finally,the paper conducts the empirical analysis to test the above hypothesis in the selected sample of the SME board.The results are as follows:(1)The relationship between subsidies(credit)and channel elements is positive and subsidies or credit could promote the investment of the technological innovation effectively.(2)There is significant difference between subsidies and credit about the threshold effect of technological innovation.On the one hand,there exists double threshold effect in the innovation model to the subsidies,which is influenced by R&D.But there is only one threshold effect influenced by the human capital and the technological spillover.While,to the credit,only R&D has one threshold.On the other hand,the subsidies has much more positive effect in the promotion of independent innovation comparing to the credit.The credit could restrict the independent innovation to some extent and empirical results show that this restriction is mainly reflected by restraining the input of human capital.(3)With the increase of government subsidies or credit,the constrains of financing are eased,causing the corresponding changes in the technological innovation model as follows:the enterprises will put more R&D capital and human capital in the independent innovation while less in the imitation innovation.Meanwhile,because of technology spillover effect of foreign investors,the capacity of independent innovation is strengthened,and the imitation innovation gradually weakened.The robustness of the study further confirms the above conclusions.The above results reveal to us that both subsidies and credit are beneficial for the small and medium private enterprises to transfer from the imitation innovation to the independent innovation.But it is necessary to rationally guide the allocation of funds and make the funds more efficient in the allocation of the channel elements.On the other hand,subsidies has much more great force to drive independent innovation comparing to the credit.Therefore,it is necessary to put more financial subsidies in the enterprises and eliminate financing discrimination.Finally,we need rationally guide the investment in human capital,actively explore foreign business and introduce foreign capital to strengthen the technological forces.