The Effect Of Government Subsidy On Innovation

With the intelligent manufacturing,information Internet,new energy,represented by a new round of industrial revolution,the development of science and technology has become the decisive force of national economic development.At present,the Chinese government has gradually transformed its thinking on economic development and has made efforts to develop China from a "Manufacturing country" to become a "Innovation country"' In 2005,Premier Li Keqiang also called on the Government Work Report to promote public entrepreneurship and innovation,hoping to stimulate the nation's innovative genes.Enterprises as the most important part of innovation,at the same time as the scientific and technological achievements into the main force of productivity,to achieve the transformation and upgrading of China's economic development strategy can not be separated from the enterprise innovation,of course,encourage enterprise innovation activities can not do without government support.On the other hand,since the reform and opening up in 1978,although China's economic development has achieved remarkable results,but the development of China's independent innovation capability is still bottleneck,there is a big gap between the developed countries and us,the overall innovation capacity of enterprises is not strong enough.The non-exclusive and spillover of technological innovation is the most important constraint on the high risk innovation activities of the enterprise.It also provides the basis for the government to carry out R&D subsidies to the enterprises,so that the government plays an increasingly important role in R&D innovation activities of enterprises.Scholars have also studied the impact of government subsidies on innovation.Some scholars have pointed out that because of the non-competitive and exclusive,the government subsidies for innovation activities is very useful;but some scholars have found that the impact of government subsidies on innovation is not obvious.Subsidies may be squeezed out of their own innovative investment,easy to cause business corruption and information asymmetry brought about by the inefficiency of government subsidies.In order to encourage enterprises to independent innovation to enhance market competitiveness,our government in addition to improving the R&D subsidies to enterprises,will apply different subsidies for enterprises to subsidize,and strive to more effectively enhance the ability of enterprise innovation.At present,the Chinese government mainly uses direct financial subsidies and indirect tax incentives to encourage enterprises to innovate.This paper uses multiple regression methods to test the research hypotheses based on the GEM listed companies as samples from 2013 to 2015.The innovation ability is measured by the research investment and innovation performance,and the impact of the government subsidy on the enterprise innovation is studied from the perspective of different government subsidies.Taking into account the regional differences in the enterprise,which may lead to differences in the impact of government subsidies on innovation.This paper divides the sample enterprises into the eastern and non-eastern regions,and further studies the different impact of different government subsidies on enterprises in different regions.The results show that the financial subsidy and tax incentives can promote the research investment of the enterprise and encourage the innovation performance of the enterprise,and the incentive effect of the financial subsidy policy is more obvious than that of the tax benefit.The impact of financial subsidies and tax incentives on the innovation of enterprises in different regions is different.Financial subsidies have a significant incentive on the eastern region and non-eastern region of the research investment and innovation performance.Tax incentives have a significant incentive to the research investment and innovation performance in the eastern region,but there is no significant relationship with the research investment and innovation performance in the non-eastern region.Finally,according to the conclusion of this paper,we will provide reasonable suggestions for the government to perfect the R&D subsidy policy.