Research On The Impact Of Industrial Policy On Technological Innovation Of Manufacturing Enterprises

As one of the core objectives of industrial policy,industrial upgrading depends largely on the technological innovation activities of enterprises.Since twenty-first Century,with the gradual scarcity of natural resources and the increase of labor costs,the development of China's manufacturing industry with resource intensive and labor-intensive is gradually slowing down.What manufacturing enterprises all need is technological innovation.To ensure the stable development and upgrading of the industry,and finally achieve the sustained economic growth of the country,the Chinese government puts a number of industrial policies to improve the enthusiasm of enterprise technological innovation.China has the largest number of industrial policies,the most extensive range and the deepest impact on the manufacturing industry due to the unique institutional factors,and the financial,tax and market regulation tools it owns can also play a decisive role in the development of the enterprises,so technological innovation activities of the enterprises do need industrial policy`s help.Because of the rare researches about how Chinese industrial policy affect technological innovation of manufacturing enterprises,it`s very helpful for us to clarify its mechanism and its effect.We,on the basis of putting forward questions,analyzing problems,solving problems and proposing countermeasures,studies the impact of China's industrial policy on technological innovation of manufacturing enterprises.After putting forward questions,our researches can be divided into four parts: theoretical and literature review,mechanism analysis,experience analysis and conclusion.In the theoretical foundation part,we first define the concept of industrial policy and technological innovation,and clarify the theoretical support for the research framework.It can be found through literature review that on the one hand,scholars have more research on developed countries and less research on China;on the other hand,the relevant scholars have more independent research on industrial policy and manufacturing technology innovation,and ignore the relationship between them.In addition,most of the research is being studied theoretically,and lack of empirical analysis.In theoretical part,we first make some hypothesis on the behavioral characteristics of the subjects,and build a basic framework of the research through discussing of industrial policy and its policy tools on the direct and indirect transmission path of technological innovation.We then find that the industrial policy do have an important impact on technological innovation of the manufacturing enterprises,and mainly through tax relief,government subsidies and the change of market forces to motivate enterprise technological innovation.In empirical part,we studied the trend,characteristics and effects of industrial policy and the technological innovation of manufacturing enterprises according to the evolution trend of text analysis,visual analysis,statistical analysis and quantitative analysis.First,we identify the period of the role of industrial policy.Based on the mainstream literature research,the related data analysis of technological innovation in manufacturing enterprises and the quantitative and text analysis of industrial policy,we find that,before 2006,the imperfect incentive mode of system,concept and policy leads to the ineffectiveness of industrial policy to the technological innovation of manufacturing enterprises.And the level of innovation is not high.However,from the "11th Five-Year" period,various factors have been improved through continuous reform.The incentive effect of industrial policy to the technological innovation of manufacturing enterprises has gradually emerged.The technological innovation level of manufacturing enterprises has been improved continuously.And with the expansion of the scope of policy incentive in the "12th Five-Year" period,the level of technological innovation of enterprises has increased substantially on average.This reflects the promotion effect of China's industrial policy on technological innovation of manufacturing enterprises.Second,we estimate the impact of industrial policy on technological innovation of manufacturing enterprises.Through the establishment of a DID model based on endogenous consideration,the impact effect of industrial policy is studied by using the text data of 2006-2015 years and five-year plan and the related data of enterprise technological innovation.The results show that,during the period of the sample,the incentive of industrial policy has a significant positive effect on the technological innovation of manufacturing enterprises.Because of the incentive of industrial policy to technology innovation,the average degree of technological innovation of manufacturing enterprises is increased by 17.2%,of which the promotion effect of the state-owned enterprises is greater than that of non-state-owned enterprises.The promoting effect of “surface innovation” is higher than that of “essential innovation”.From the time change dimension of the policy role,the initial incentive effect of the policy role is not significant,but it will increase year by year,until the maximum incentive effect is reached in third years,and in the following time it will decrease year by year,and the incentive effect is in the form of inverted U.Third,we examine how policy tools affect technological innovation of manufacturing enterprises.The research finds that industrial policies can increase the intensity of tax relief,increase government subsidies and weaken the market forces to improve the technological innovation level of enterprises.The government subsidies and tax relief have played a significant positive role in the process of the whole policy role.They are the main policy tools in industrial policy,and they make the technological innovation been improved by 15.9% and 9.4% on average,respectively.The incentive effect of tax relief on both state-owned enterprise and non-state owned enterprises is equal,but the government subsidies can do better on the state-owned side.In addition,the incentive effect of market power adjustment is not very effective,it has no significant incentive effect on state-owned enterprises,but has 0.7% promoting effect on non-state-owned enterprises.The policy implications of the above conclusions are as follows: first,in the process of technological innovation,the enterprises are more on the surface innovation than the essential innovation which has higher social efficiency.Therefore,the government can set up relevant screening and censorship mechanism to encourage enterprises to carry out essential innovation.Second,the industrial policy has more incentive on state-owned enterprises rather than non state-owned enterprises.In order to realize the innovation of all kinds and stimulate the innovation vitality of the enterprise,all enterprises should be encouraged more comprehensively and more balanced.Third,the technological innovation of enterprises is more supported by the government funds such as tax relief and government subsidies.Therefore,the government can make more flexible use of policy tools to motivate technological innovation activities of enterprises.