Research On The Impact Of Government Subsidy And Financial Redundancy On Enterprise Innovation Activities

The Chinese government has always attached importance to the promotion of scientific and technological innovation to economic development,and encouraged enterprises to become the mainstay of technological innovation.Through the “tangible hand” to make up for the “market failure” under the imperfect economic system,and to guide the development of corporate innovation activities.High-tech enterprises face strong financing constraints.However,when the government plays a role in the allocation of subsidized resources,the company does not fully utilize the interactive configuration of internal financial resources and external subsidy resources,which makes it difficult to improve resource utilization.How to effectively use government subsidized resources to carry out enterprise innovation activities has always been a topic of concern for the government,enterprises and scholars.Based on the background of vigorously promoting enterprise innovation in China,the thesis analyzes and proposes relevant hypotheses based on the relevant literatures,combined with neoclassical innovation theory,organizational behavior theory,agency theory and high-order theory.Based on the external government subsidy resource acquisition and the formation of internal financial redundancy resources,this paper uses OLS to empirically test the impact of government subsidies and financial redundancy on total R&D investment and R&D investment.In terms of innovation output,the negative binomial regression model is used to analyze the impact of government subsidies and financial redundancy on the technological innovation output of enterprises.In addition,this paper divides innovation output into substantive innovation and strategic innovation,and discusses government subsidies separately.And the difference in financial redundancy under different innovation output motives.Further,this paper explores the regulatory role of executive decision-making preferences on corporate internal and external resources affecting corporate innovation,and the complementary role of government subsidies and financial redundancy.The study found that:(1)government R&D subsidies and corporate financial redundancy are significantly positively correlated with total R&D investment.However,government subsidies have squeezed out the company's own R&D investment.(2)The government R&D subsidies and financial redundancy are both inverted U-shaped with the innovation output of enterprises.This inverted U-shaped relationship is still established under the influence of government subsidies affecting substantive innovation output and financial redundancy affecting strategic innovation output.(3)Compared with government subsidies,executives' technology decision-making preferences are more sensitive to corporate financial redundancy resources,and can significantly enhance financial redundancy and play an incentive to stimulate R&D investment.Executives cannot respond quickly to government subsidies to this uncertain external resource.In addition,government subsidies and financial redundancy have complementary roles in promoting the innovation investment of enterprises,and this complementarity is more significant in the sample groups in which executives have technical decision preferences.