The Impact Of Government R&D Funding On The Innovation Performance Of High-tech Industries

As a knowledge-intensive and technology-intensive industry,high-tech industry is the subject of R&D activities in a country or region,and can exert a huge impact on the level of economic and technological development.However,due to the existence of market failure,if the R&D activities are completely handed over to the market and carried out voluntarily by the market,the supply of R&D information,knowledge and technology will be insufficient to meet the social demand,which requires the government to provide R&D subsidies for high-tech industries.The government usually subsidizes the R&D activities of high-tech industries by means of capital subsidies and tax incentives,so as to make up for the lack of market regulation and promote the improvement of the innovation level of the whole society.In addition,the effect of government R&D funding may also be affected by space-related factors and industry heterogeneity.Spatially related factors enable government R&D subsidies to influence innovation activities in neighboring areas,and lead to spatial links in innovation activities of high-tech industries.The existence of industry heterogeneity makes it possible for government R&D funding to have different impacts in the five major industries of high-tech industry.Therefore,it is necessary to consider the influence of space-related factors and industry heterogeneity on the effect of government R&D funding.This paper,using 2009-2016 Chinese mainland 30 provincial-level administrative region(except Tibet)high technology industry panel data,first analyzed the fund subsidies and tax breaks the different influence to the enterprise innovation mechanism,and then on entropy weight method is used to account for the high technology industry,on the basis of innovation performance,based on spatial weight matrix of spatial econometric model,the empirical examines the subsidies and tax breaks on high technology industry and the influence of the five major industry innovation performance.The result shows that:(1)Both capital subsidies and tax incentives can improve the innovation performance level of high-tech industries,but their influences are different.Therefore,the government should strengthen the intensity of capital subsidy and tax preference for high-tech industry,so as to promote the improvement of innovation performance of high-tech industry.At the same time,the government should focus on giving full play to the advantages of tax incentives,and increase the intensity of tax incentives,so as to promote the development of high-tech industries.(2)Both profitability and technology introduction can significantly promote the improvement of innovation performance of high-tech industries,while enterprise scale has a significant inverted u-shaped influence on the improvement of innovation performance of high-tech industries.Therefore,if the high-tech industry wants to improve its innovation performance,it must improve its profitability,increase technology introduction,and control the enterprise scale within a reasonable range.(3)When government R&D subsidy affects the innovation performance of high-tech industries in the funded areas,it will also affect the innovation performance of neighboring areas.The innovation performance of high-tech industry has positive spatial correlation.Therefore,the high-tech industry should strengthen learning and cooperation with neighboring regions to promote its own innovation level.(4)Government R&D subsidies have different effects on the innovation performance of the five high-tech industries.Therefore,the government should formulate differentiation strategies based on the characteristics of various industries to avoid the phenomenon of one-size-fits-all financing.