Financing Constraints,Government Subsidies And Corporate Innovation

Strategic emerging industries are important engines for our country to stimulate high-quality economic growth.The “13th Five-Year Plan” period is a decisive stage for China to build a well-off society in an all-round way.It is also a period of strategic opportunities for strategic emerging industries.The proportion of strategic emerging industries added value in China has reached 8% of GDP in 2015,and industrial innovation capacity and profitability have increased significantly.The “Thirteenth Five-Year National Strategic Emerging Industries Development Plan” further established the prominent position of strategic emerging industries in the future competition,and this proportion will reach 15% in 2020.However,the competitive advantage of China's strategic emerging industries is not obvious.There still are problems of insufficient R&D investment and financing constraints.The government needs to subsidize strategic emerging industries.However,whether government subsidies have “crowding-out” or “relaxation” effects remains to be studied.Based on the perspective of corporate innovation,this paper chooses financing constraints,government grants,and corporate innovation as research objects,and collects 493 strategic emerging industry listed companies that listed on the A-shares which disclosed R&D investment from 2010 to 2016 as research samples.Information asymmetry theory,uncertainty theory and government intervention theory are the starting points of research.This paper explores the relationship between financing constraints and corporate R&D innovation,government grants and corporate R&D innovation.The article adopts the Tobit regression model,with R&D investment intensity being the explanatory variable,and the financing constraint SA index,government subsidies being the explanatory variables.Through empirical research methods,we can examine the constraints of financing constraints and the "relaxation" role of government subsidies.The results of the study indicate that the innovation activities of enterprises have been adversely affected by financing constraints to varying degrees.This is particularly evident in non-state-owned and small or medium-sized enterprises.The government's fund subsidy policy will directly and indirectly improve the difficulty of financing constraints that companies face in innovation activities.This is also particularly evident in non-state-owned and small or medium-sized enterprises.Although non-state-owned enterprises and small or medium-sized enterprises are part of the strategic emerging industries,they are also faced with more stringent financing constraints than state-owned and large-scale enterprises.Although the government's financial support for the latter is significantly better,the overall improvement effect is not very satisfactory.Based on the research conclusions,three measures have been proposed for improvement: First,reduce information asymmetry.Regulate R&D investment information disclosure,strengthen intellectual property protection for innovation and improve third-party institutions to evaluate R&D projects.Second,broaden the financing channels.Encourage financial institutions to innovate financing products and services,establish and improve a multi-level capital market system and guide social capital into strategic emerging industries.Third,targeted government subsidies.Elaborate and unify the eligibility criteria for government funding,disclose and publicize the use of funds,and improve the selection and evaluation mechanism for subsidy projects.Increase government subsidies for small and medium-sized non-state-owned enterprises when it is appropriate.