Market Competition,Tax Incentives And R&D Investment

Innovation has become an important criterion for promoting economic development and testing comprehensive national strength.In the "13th Five-Year Plan",the "Made in China 2025" strategy with innovation,growth and guidance as the core was clearly put forward,and it was proposed that we must adhere to the path of innovation-driven development,base on development needs and industrial base,and substantially increase the technological content of the industry.Create new advantages for future development.The innovation capability at the national level is closely related to the independent research and development capability at the enterprise level.It can also be said that the research and development capability of the enterprise is related to the lifeline of the national economy and affects the supply-side reform policy.At present,most academics pay attention to the relationship between tax incentives and corporate R&D expenditures,and rarely consider the relationship between the three from the perspective of product market competition.Therefore,this paper combines the economic background of China's current wave of innovation,based on the perspective of marketcompetition,and uses the data of listed companies in 2008-2017 as a sample to empirically analyze the relationship between tax incentives and market competitiveness on R&D investment.It is necessary to study whether market competition can regulate the relationship between tax preferential policies and market competition,thus providing relevant theoretical basis for the formulation of China's tax preferential policies.Based on agency cost theory and public economics theory,this paper argues that tax incentives and market competition have a consistent role in improving information asymmetry and optimizing resource allocation,and can improve enterprise R&D investment.Therefore,this paper proposes that tax incentives have a positive adjustment effect on the relationship between market competition and corporate R&D investment.Based on empirical research,this paper finds that the impact of tax incentives on R&D investment is linear,and the degree of tax incentives has a positive relationship with R&D investment.The higher the tax incentives,the more product R&D investment.Moreover,tax incentives have a positive adjustment effect on the relationship between market competition and R&D investment,and tax incentives have expanded the positive effect of market competition on R&D investment.In addition,the paper also studies the impact of property rights,firm size,regional location on market competition and tax incentives and product R&D investment,and conducts stability tests.The main contribution of this paper is to study the mechanism of tax incentives,and proposes that tax incentives play a regulatory role in the relationship between market competition and R&D,supplementing the market gap,tax preferential policies and research gaps in enterprise R&D,and further expanding Research framework for macroeconomic policy and corporate micro-behavior.In addition,the text is based on the research conclusions,puts forward a series of policy improvement suggestions,contributes to the improvement of China's tax preferential policies,and has theoretical reference significance for promoting the R&D investment of Chinese enterprises.