R&D Cost Deduction Policy,R&D Investment And Enterprise Innovation

Since the 21st century,with the continuous innovation of science and technology and the increasing competition in the market,scientific and technological innovation has become a major part of promoting the transformation and upgrading of the global economy.Therefore,governments have begun to pay more attention to the policy of rejuvenating the country by science and technology and formulate a series of policies to encourage enterprises to carry out R&D and innovation activities.On the road of encouraging innovation,China keeps pace with the times and constantly formulates and updates relevant tax preferential policies and government subsidies.Among them,the preferential policy of R&D expense plus deduction is the main tax preferential policy to encourage domestic enterprises to increase R&D investment.Our country's enterprise R&D expense plus deduction policy has been in the process of continuous improvement since its formation in 1996.In May 2017,under the new situation of mass entrepreneurship and mass innovation,the Ministry of Finance,the State Administration of Taxation and the Ministry of Science and Technology jointly issued the Notice on Increasing the Pre-tax Increased Deduction Ratio of R&D Expenses for Technology-based SMEs(Fiscal and Tax[2017]34).The main content is the tax deduction of R&D Expenses for S-based SMEs from January 1,2017 to December 31,2019.The incentive will be increased,and the proportion of R&D fee deduction will be increased from 50%to 75%.In 2018,under the background of a series of incentives for innovation such as tax reduction and fee reduction,in order to further encourage enterprises to increase R&D investment,support scientific and technological innovation,and improve enterprises' independent innovation ability,Fiscal and Tax[2018]99 formally increased the proportion of R&D expenses added and deducted to 75%from small and medium-sized enterprises of Science and technology to all enterprises.So,for the government,the policy adjustment in 2017 has been implemented for two years.What is the effect of the policy implementation and the response of small and medium-sized technology-based enterprises?Does it stimulate enterprises to increase their investment in R&D and improve their innovation performance?For enterprises,the improvement of innovation efficiency will ultimately enable enterprises to achieve a higher input-output ratio and improve their competitiveness.What is the impact of the increase of R&D cost plus deduction on innovation efficiency?These are all problems that need to be tested after the implementation of the policy.Based on the analysis of market failure theory,tax incentive theory,innovation and technology capital theory,this paper chooses the new three-board innovative enterprises from 2015 to 2017 as the research sample,and uses the PSM-DID model to study the effect of increasing R&D investment,innovation performance and innovation efficiency of S&T SMEs in 2017.Empirical tests show that:(1)the increase of R&D cost plus deduction is positively correlated with R&D investment of S&T SMEs;(2)the increase of R&D cost plus deduction is positively correlated with innovation performance of S&T SMEs,but not significantly;(3)the increase of R&D cost plus deduction is not significantly correlated with innovation efficiency of S&T SMEs.It shows that the policy has played a certain role in promoting the intensity of R&D investment,but it does not have enough incentive effect on innovation performance in a short time and has no obvious impact on innovation efficiency.This paper analyses the problems found and puts forward relevant suggestions.It is of great significance to further improve the policy of R&D expense plus deduction and to better stimulate enterprise innovation.