Timing Choice Of Government Subsidies And Innovation For High-tech Industry

The 19 th National Congress of the Communist Party of China blew a strong clarion call to accelerate the construction of an innovative country,and proposed that "innovation is the first driving force for development and the strategic support for building a modern economic system." Hi-Tech industries are the most promising subjects in the technological innovation group,while the improvement of innovation ability is preconditioned by the investment of R&D funds.Due to the long cycle of innovation activities,large demand for R&D funds and less tangible assets that can be used for bank mortgage,Hi-Tech industries in China are generally subject to R&D financing constraints.It seriously hinders the improvement of enterprises' innovation ability.Therefore,China has intensified its support for financial policy and adopted various forms of government subsidies to encourage enterprises to achieve independent innovation ability.It is hoped that the role of the“seed fund”will be promoted through the government subsidies,and the Hi-Tech industries will invest its own resources and improve its innovation ability.But does government subsidies have an effect on improving the innovation ability of Hi-Tech industries? Does the financing constraints inhibit the innovation ability of Hi-Tech industries? Is the adjustment effect of financing constraints significant in different life cycles of the enterprise?The question of when the government subsidies to maximize the innovation ability of Hi-Tech industries is a matter of great concern to the government,enterprises and taxpayers.Based on the theoretical research of domestic and foreign scholars and combined with the industry characteristics of China's Hi-Tech industries.this paper selects 887Hi-Tech industries from 2010 to 2017 as research objects,and uses the adjustment effect model to analyze the data.We found that advanced subsidies and subsidies can enhance the ability of innovation,and the promotion of advanced subsidies is greater;while theadvanced and current financing constraints can directly inhibit the ability of innovation,and the current financing constraints will be more restrained.Furthermore,the time-series regression of the samples by life cycle is carried out.It is found that the negative moderating effect of financing constraints is not significant in the introduction period and the recession period,and subsidies can improve the innovation anytime.The negative moderating effect of financing constraints of growth companies on the positive correlation between subsidies and innovation is not significant,and it is the optimal time for subsidy.The optimal subsidy timing in the mature period is advanced subsidies,and the negative moderating effect of financing constraints is small.Therefore,this paper proposes to construct optimal subsidy timing management mechanism according to the life cycle and make use of Blockchain Technology to achieve management implementation path,and strengthen the refined management of subsidies.The recommendations in this paper provide suggestions for the opportunity of government subsidies and policy making.