Income Tax Preference And Technological Innovation In Manufacturing Enterprises

The real economy is the lifeblood and core of a country's economic development.Currently,the revitalization of the real economy has become one of the important tasks of China's economic development.In the real economy Firm,manufacturing is the most critical and fundamental,and it is related to the national economy and people's livelihood.It is the most strategic and related to the international leading position and level of the national economy.At present,China's real economy is undergoing transformation and upgrading.In the process of pursuing independent innovation and creation,enterprise innovation is in the main position.We should increase the encouragement of enterprise technology innovation and increase the core technology of enterprises.Now,China is a big manufacturing country,second only to the United States in the world,but it does not mean that we are strong.China's manufacturing Firm is still at the lower end of the industrial chain,and it is at the low-end in the international division of labor.Now,facing the attention and stimulation strategy of other countries to manufacturing Firm and the weakening of the low-cost competitive advantage of China's internal manufacturing Firm,China's manufacturing transformation and upgrading is an urgent task.Fiscal and taxation policies can carry out macroeconomic regulation and control of the economy.Among them,taxation policies have neutral and universal effects,and have a small distortion effect on the market.So tax incentives have become an important means for countries to stimulate innovation.The R&D tax incentives have a significant role in inducing and can be widely applied.Since 1996,China has successively issued a series of preferential policies to encourage research and development.In this context,a comprehensive and in-depth study of the impact of tax incentives on corporate innovation behavior can provide substantive advice for the government to formulate policies and the corporate to apply the policies.Based on the background of China's implementation of innovation-driven development strategy and emphasis of the transformation and upgrading of the real economy,this paper theoretically analyzes the influence of tax incentives on technological innovation of enterprises according to the requirements of the Made in China 2025 action plan after collecting the domestic and foreign literature.After that,it summarizes China's tax preferential policies and analyzes the innovation status of China's manufacturing enterprises.Subsequently,selecting the data of 2012-2017 listed on the Shanghai and Shenzhen main board manufacturing companies as the research sample,using the two-way fixed effect model for regression analysis and meanwhile considering the sensitivity of different types of enterprises to tax incentives,this paper carry out the heterogeneity analysis,combining the technical level of enterprises,the scale of enterprises and the nature of ownership.Thus this paper initiates an in-depth study of the incentive effect of tax incentives on enterprise technology innovation,thereby further improving the fiscal and taxation policy recommendations to promote the transformation and upgrading of China's manufacturing Firm,responding to innovation-driven strategies,promoting enterprise innovation,and driving economic transformation and upgrading..After the empirical analysis,the paper draws the following conclusions:(1)Corporate income tax incentives have a significant role in promoting R&D investment,but there is no significant incentive effect on R&D output of enterprises.(2)Based on the heterogeneity analysis of enterprises,it is found that in terms of R&D investment,the incentive effect of corporate income tax incentives on high-tech enterprises is greater than that of low-tech and medium-tech enterprises,the incentive effect on private enterprises is greater than that on state-owned enterprises and the incentive effect on large-scale enterprises is greater than the incentive effect on small-scale enterprises;in terms of R&D output,income tax incentives have no significant incentive effect on the technological innovation output of heterogeneous enterprises.Based on the conclusions of empirical research,this paper proposes the following policy recommendations:(1)Optimize R&D tax incentive policy design by stimulating enterprise technology innovation output as policy orientation.(2)Adopt differentiated tax incentives between industries to strengthen the targeting of tax policies.(3)Pay attention to the tax policy to private enterprises,and strengthen the performance appraisal of state-owned enterprises.(4)Incentive policies are appropriately inclined to SMEs to provide a better business environment and financing guarantees.(5)Pay attention to the combination of personal and corporate income tax incentives and improve the incentive policies of R&D personnel.