The Influence Of Government R&D Subsidy On Corporate R&D Expenditure

This paper adopts panel data of large and medium-sized industrial enterprises in China from 2009 to 2015,and analyzes the impact of government R&D subsidies on R&D expenditure of enterprises from a macro level.This paper constructs a dynamic panel data model,uses system GMM to estimate,and uses tool variables to solve endogenous problems.Concluded as follow:Government R&D subsidies will increase R&D spending by enterprises.Without considering the endogenous nature of government R&D subsidies,it will overestimate the contribution of government R&D subsidies to R&D expenditures.Government R&D subsidies has a more pronounced impact on large companies.In contrast,the impact of government R&D subsidies on medium-sized companies is less clear;the government's crowding-in effect on non-state-owned R&D funding is very significant.In contrast,the government's R&D subsidies for state-owned enterprises has significantly increased the total R&D expenditure of state-owned enterprises,but it has squeezed state-owned enterprises to raise their own R&D funds.Finally,the paper suggests that the government should continue to increase the R&D expenditure intensity,further strengthen the R&D main position of Chinese enterprises,improve the allocation structure of government R&D funds in the R&D executive body,and accelerate the improvement of the regulatory mechanism for science and technology investment.