Research On The Impact Of Industrial Policy On SMEs' Innovative Investment

Innovation is an important strategic choice for cultivating the competitive advantage of enterprises in the market and realizing the long-term development of enterprises.It plays a key role in realizing the sustained and rapid development of a country's economy.In theory,small and medium-sized enterprises with small scale and simple organizational structure can flexibly grasp market information,and thus have innate advantages in innovation activities.So they can become the main body of innovation activities in China.However,the current status of SMEs carrying out innovative activities is not optimistic.As early as 2014,a study showed that about 60%of SMEs in China have been declining their investment in R&D activities.A publication in the 2016 Economic Times reported that Chinese SMEs are enthusiastic about R&D activities.But in the process of development,it is limited by many factors such as scale and capital,forming the status quo of developing "sub-health".It can be seen that focusing on the innovation activities of SMEs is the focus of China's current innovation work.In recent years,the Chinese government has repeatedly stressed the need to accelerate the innovation drive of economic development,improve the innovation capabilities of Chinese companies,and create a competitive advantage of the Chinese market in the international market.To this end,the government has introduced a series of policies and related macro measures to encourage enterprises to carry out innovative activities,one of which is the industrial policy represented by the five-year plan.For example,in the "Twelfth Five-Year Plan",it is clearly pointed out that the outstanding problems in China's current development include the lack of scientific and technological innovation capabilities.Therefore,it is necessary to promote the development of national innovation capabilities by promoting the development of technologically-oriented emerging industries and innovative economic development methods.Under the guidance of this industrial policy,local governments also encourage enterprise innovation through various positive measures,such as issuing innovation subsidies,lowering the entry barriers for high-tech industries,and implementing tax incentives for innovation activities or innovation investments.It can be seen that.in theory,the introduction and implementation of industrial policies can stimulate the enthusiasm of enterprises for innovative investment and positively promote the innovation of enterprises.So,in fact,how will the industrial policies affect the innovation investment of enterprises?Especially for small and medium-sized enterprises that are deeply affected by inherent limitations,can industrial policies alleviate the current innovation dilemma?These issues have the value of academic research.In order to confirm the actual effect of industrial policy in the field of enterprise innovation,the academic community began to pay attention to the relationship between industrial policy and enterprise innovation.Some research results on listed companies show that industrial policies can bring direct resource inflows,indirect encouragement and guidance to enterprises,thus promoting the effect of innovative investment.Some research results negate the positive effect of industrial policy in the real economy.They believe that the industrial economy will reduce the innovation quality of enterprises and squeeze out the independent innovation capability of enterprises.However,few studies have focused on the impact of industrial policies on SMEs' innovation behavior.Therefore,starting from the above-mentioned realistic background and theoretical research gap,in-depth discussion of the effect of industrial policy on SME innovation investment has both practical and theoretical significance.Based on the research results,this paper puts forward relevant countermeasures and suggestions for improving industrial policies,and explains the value of research at the policy level.Based on this,this paper takes the SMEs supported by the industrial policy during the "Eleventh Five-Year Plan" and the "Twelfth Five-Year Plan" as experimental samples and those that supported by industrial policies during the "Eleventh Five-Year Plan" period,but not during the "Twelfth Five-Year Plan" period as the control samples.To empirically test the impact of the industrial policy represented by the "12th Five-Year Plan" on the innovation of SMEs,we construct the double difference model,and then examine the regulatory effect of the nature of corporate property rights and the degree of marketization on industrial policies and SME innovation investment.Further,from the perspective of financing constraints,the potential mechanism of the impact of industrial policies on SME innovation investment is examined.The empirical results show that:(1)industrial policy has a restraining effect on innovative investment of small and medium-sized enterprises,and this suppression effect is more prominent in enterprises which are private or in low-marketization areas;(2)industrial policy meeting Intensify the financing constraints of SMEs,thus inhibiting R&D investment of SMEs.The impact of industrial policies on SME financing constraints is more pronounced in enterprises which are private or in low-market areas.The main innovations of this paper are as follows:(1)Exploring the impact of the introduction of industrial policies on SMEs' innovative investment,further exploring the relationship between industrial policies and SME financing constraints,and discovering that industrial policies have a restraining effect on SMEs' innovative investment.It will also aggravate the financing constraints of SMEs and enrich the research in the field of industrial policy economic consequences;(2)Study the influencing factors of SMEs'innovation investment from the perspective of industrial policy,and improve the research system of existing SMEs' innovative investment.