A Study Of The Impact Of Policy Uncertainty On Firm's Innovation

Since the financial crisis in 2008,governments have frequently adjusted their current economic policies to smooth economic fluctuations,so economic policy uncertainty has increased significantly.Therefore,in recent years,the uncertainty of economic policy has attracted the attention of more and more scholars.At the same time,since the 18 th National Congress proposed the strategy of innovation-driven development,the word "innovation" has become one of the most concerned words in China's economic development.Innovation is a key factor in promoting China's economic growth.Fluctuations in economic policies will change the external economic environment in which companies are located,which in turn will affect corporate innovation investment decisions.Relatively speaking,economic fluctuations are often sudden and exogenous,the government can not control,and the changes in economic policies have strong subjectivity and controllability.Therefore,it is of great theoretical and practical significance to study how economic policy uncertainty affects corporate innovation activities.In addition,the government departments also adopt the way of research and development subsidies for enterprises to promote enterprise innovation,then whether government R&D subsidies will affect the mechanism of economic policy uncertainty on enterprise innovation.This issue is also worth exploring.This paper mainly explores the impact of economic policy uncertainty on enterprise innovation from two aspects: theoretical analysis and empirical test.In theory,according to the theory of technological innovation,real option theory,financing constraint theory,signal transmission theory,the mechanism of the impact of economic policy uncertainty on enterprise innovation is elaborated and analyzed in depth.The sample period is from 2009 to2017.From the perspective of innovation output,the fixed effect model is used to analyze the impact of economic policy uncertainty on Chinese enterprise innovation,and further The intermediary test model is used to test the two mechanisms of policy uncertainty for enterprise innovation.The results show that economic policy uncertainty will inhibit enterprise innovation,economic policy uncertainty inhibits enterprise innovation by increasing financing constraints,and the path of enterprise innovation by increasing corporate risk is notsignificant.In addition,government R&D subsidies can significantly alleviate the inhibitory effect of economic policy uncertainty on corporate innovation.Finally,the first recommendations are proposed from three perspectives: the frequency of economic policy,the optimization of financing environment,and the increase of government R&D subsidies.