Government Subsidies And Corporate Innovation

Innovation is the first driving force for development,the strategic support for the healthy development of China's economy under new historical conditions,an important force for the development of a nation,and an important manifestation of a country's comprehensive national strength.In the new era of rapid economic development,innovation is regarded as an entry permit and a pass for the new era.Only through continuous research and innovation can we continue to make progress and make breakthroughs,have our own core competitiveness,and gain a foothold in the new era.In recent years,China's development has been rapid,reflected in all aspects,whether it is scientific research achievements,education level,or aerospace industry,national defense strength,etc.,have shown a rapid development trend.Innovation plays an irreplaceable role in it.Behind the development of innovation is the increased investment in scientific research funds.At the same time,innovation in the new era puts forward higher requirements for the quality of high-tech talents.China attaches great importance to innovation.In recent years,funding for scientific research has gradually increased,and research and experimental development(R&D)funding has continued to increase in intensity.R&D entities are mainly divided into three categories:government-owned research institutes,colleges and universities,and R&D expenditures of each subject are quite different.Taking 2018 as an example,the proportion of R&D expenditures of the three is 13.7%,7.4%,and 77.4%.This shows that enterprises are the main body of innovation under the conditions of market economy.In 2018,the expenditure of various enterprises has reached 1523.37 billion yuan,an increase of 11.5%year-on-year.There are many factors that affect enterprise R&D investment.This article focuses on government subsidies and intellectual property protection factors.This article is divided into two parts,theoretical and empirical.The theoretical part mainly analyzes the mechanism of government subsidies,intellectual property protection and the nature of enterprise ownership affecting enterprise innovation,and further analyzes the difference in the effect of government subsidies on enterprise innovation under different degrees of intellectual property protection.The empirical part studies the effect of government subsidies on the threshold of intellectual property protection in the process of the impact of corporate innovation.Using data from 2013-2017 Shanghai and Shenzhen A-share listed companies,a total of 1845 research samples from 369 companies,using the panel threshold proposed by Hansen.The regression model empirically tests the threshold effect of intellectual property protection on the relationship between government subsidies and enterprise innovation.The study found that:First,good intellectual property protection promotes innovation investment in enterprises;Second,with the change in the protection of intellectual property rights in the region where the enterprise is located,there is a structural difference in the effect of government subsidies on enterprise innovation input.lt means that there is a threshold effect of intellectual property protection between government subsidies and enterprise innovation;Third,the above non-linear threshold of intellectual property rights protection has a large difference between state-owned enterprises and non-state-owned enterprises.For non-state-owned enterprises,with the gradual increase in the protection of intellectual property rights,the promotion effect of government subsidies on enterprise innovation input first increases and then decreases.There are two thresholds in the protection of intellectual property rights.For non-state-owned enterprises listed on the main board of our country,there is an optimal range for the promotion of innovation by government subsidies for intellectual property protection.Only when the protection of intellectual property rights in the region where the enterprise is located is within this range can the innovation promotion role of government subsidies achieve the best results.Too high or too low intellectual property protection is not conducive to corporate innovation,and too high intellectual property protection will weaken the innovation promotion effect of government subsidies.For state-owned enterprises,as the protection of intellectual property rights changes from low to high,the role of government subsidies in promoting innovation investment in enterprises gradually increases,and there is a single threshold for the protection of intellectual property rights.For the state-owned enterprises listed on the main board of our country,strengthening the protection of intellectual property rights will strengthen the promotion effect of government subsidies on enterprise innovation investment.In response to the above research conclusions,this article gives the following policy recommendations on how to incentivize enterprises to strengthen investment in innovation and R&D and enhance their self-innovation capabilities.First,formulate targeted intellectual property protection policies based on different ownership properties of enterprises,and focus on strengthening Intellectual property protection of non-state-owned enterprises.Second,based on the differences in the level of intellectual property protection in various regions,formulate different government subsidy policies.Third,strengthen the judicial system and improve the anti-corruption system.