An Empirical Study On The Impact Of Taxation And Subsidy Policies On Enterprise R&D Investment

The ability of R&D and innovation has become an important manifestation of the country's core competitiveness,and it is also a field that countries must fight for.The R&D and innovation capability of a country mainly comes from the innovation investment of enterprises.In recent years,the Chinese government has continuously introduced various policies to encourage enterprises to research and develop innovation.It is mainly based on government subsidies and tax incentives.Based on the above background,this paper takes A-share listed companies as a sample,tries to study the impact of China's tax incentives and subsidy policies on R&D investment,and reveals the mechanism behind it,in order to provide effective suggestions for decision-making departments.Firstly,by constructing a mean regression model to investigate the average impact of government taxation and subsidy policies on R&D investment of enterprises,empirical results show that government tax incentives have no significant impact on R&D investment,while government subsidy policies have significant positive effects on R&D investment influences.Secondly,considering that the impact of taxation and subsidy policies on R&D investment of enterprises will be different due todifferent R&D intensity of enterprises,this paper constructs a quantile regression model to estimate the impact of government taxation and subsidy policies on the heterogeneity of R&D investment of enterprises.The empirical results show that A single tax incentive policy will promote the R&D of enterprises with lower and higher R&D intensity,but it will hinder the R&D of enterprises with medium R&D intensity.For enterprises with medium and high R&D intensity,the tax incentives in subsidies and portfolio policies have a significant positive impact on their R&D investment,and the impact on R&D investment of R&D companies is not significant.At the same time,considering that corporate R&D investment behavior may be affected by peer enterprise R&D investment decisions,that is,R&D investment between enterprises may have the same group effect.In order to test whether such cohort effect exists and control this mechanism of action,In this paper,the spatial mean regression model and the spatial quantile regression model are used to analyze the impact of taxation and subsidy policies on R&D investment of enterprises.The empirical results show that there is a significant positive co-group effect among R&D investment among enterprises.Finally,several policy recommendations are proposed based on the empirical findings.First,the government should increase subsidies to enterprises.Second,for companies with low R&D intensity or highR&D intensity,the government should increase tax incentives.Third,for enterprises with medium and high R&D intensity,the government should increase the intensity of tax incentives in subsidies and portfolio policies.Finally,when formulating R&D policies,the government should consider that there is a significant positive co-group effect in R&D investment between enterprises.