Government Subsidy、financial Constraint And R&D Investment

With the progress of science and technology,technological innovation has become the key to a country’s economic development.Because of the high investment and high risk characteristics of technological innovation activities,the technological innovation achievements of enterprises will produce many "spillover effects",which leads to the lower level of R&D expenditure than the social optimum level.And the government’s R&D funding can play a positive and effective role for improving the enthusiasm of enterprises R&D,reducing R&D costs and enhancing the efficiency of R&D activities.In addition to government subsidies,external financing is an important source of R&D funds,but external financing is constrained by the financing environment and the status of their own business,so ease the financing constraints faced by enterprises is the key to solve the insufficient of R&D investment.Therefore,it is of great practical significance to examine the impact of government subsidies and financing constraints on R&D investment.This paper first summarizes the research status of government subsidy to R&D investment and financing constraints to R&D investment at home and abroad,and points out that government subsidy and financing constraint are two important factors influencing enterprise R&D activities.This paper expounds the reasons of financing constraints from the aspects of financing theory of optimal order,information asymmetry theory and principal-agent theory.And the research hypothesis is put forward through theoretical analysis.Secondly,taking the data of small and medium-sized board companies in 2011-2015 as the sample,the five indexes of financial relaxation,asset-liability ratio,cash flow,net profit margin and flow ratio were used to construct the financing constraint index by binary logistic regression method.On the basis of this,the relationship between government subsidy,financing constraint and enterprise R&D investment was studied from the whole sample,the sample of different regions and the samples of different industries by using multiple regression analysis.Concluded as follow:First of all,government R&D funding not only has no "crowding-out effect" on enterprise R&D investment,but also promotes enterprises to increase expenditure on R&D activities,that is "induce effect",and more in eastern region and high-tech industry enterprises obvious.Secondly,the external financing constraints faced by enterprises will inhibit the R&D investment of SME significantly,and the inhibitory effect is more significant in mid-western regions and non-high technology industry enterprises.Finally,the restraining effect of SME financing constraints on R&D investment will be affected by government subsidies,Which has a positive effect on the relationship between financing constraints and R&D investment.This regulation is more obvious in eastern region and high-tech industry enterprises.