The Empirical Analysis On The Effectiveness Of Fiscal And Tax Policy To Enterprise Technology Innovation

Facing the great revolution of new technology to industry,Promoting the technological innovation of enterprises to upgrade the manufacturing industry is the work focus of the New economic normality in China.China has adopted many fiscal and tax policies to encourage technological innovation in enterprises,but the effectiveness of China's fiscal and tax policy on technological innovation in manufacturing enterprises need further test.Therefore,from a more innovative perspective of total factor productivity of enterprise,the paper tests the actual effect of fiscal and tax policy on technological innovation of enterprises from the level of regional and scale etc..It also achieves a certain degree of innovation and breakthrough in terms of indicators of technological innovation,TFP measurement and suggestions on the effectiveness of fiscal and taxation policy.Based on the data of China's manufacturing listed companies in 2006-2016 years,this paper calculates the total factor productivity of the enterprise by the LP method and OP method to measure the technological innovation of the enterprise.First,the paper uses the “OLS+ robust standard” and “FE+robust standard” to estimate the main model,and analyze the effectiveness of fiscal and tax policy on technological innovation from two aspects: fiscal subsidy and tax incentive.Furthermore,the paper tests the regional and scale effects of fiscal and tax policy on enterprise technological innovation by multiple regression and threshold regression.The results of the study show that:1.The effectiveness of fiscal subsidy and tax incentive have significant differences on technological innovation.On the whole,fiscal subsidy has a restraining effect on the technological innovation of enterprises,but tax incentive play a significant role in promoting technological innovation.2.From the level of regional effect,fiscal subsidy is negatively related to technological innovation in four regions and enterprises in China,but not significant in western region.Tax incentive is positively related to technological innovation in four regions of China,but the northeast region is not significant.3.From the level of scale effect,there is threshold effect on the scale in the effectiveness of fiscal and tax policy to enterprise technology innovation.For the big scale enterprises,they can make full use of the innovative resources such as financial subsidies and tax incentives,and the fiscal and tax policy can give full play to theeffectiveness of technological innovation.Based on the above conclusions,the paper provide the following suggestions:firstly,to strengthen the supervision of the fiscal and tax policy especially the fiscal subsidy.Secondly,the government should adopt preferential tax policies to encourage technological innovation,and pay attention to the implementation of regional preferential tax policy.Finally,a certain big scale enterprises have more advantages and ability to use fiscal resources in the innovation activities,fiscal policy effect is more significant,therefore,the government should pay attention to the threshold effect of scale,increase the fiscal policy support for these enterprises to the form the industry benchmark for innovation.