Market Competition?Government Subsidies And Enterprise R&D Investment

Innovation is the inexhaustible driving force for Chinese progress and development.Since the reform and opening up,China's economic development is moving forward from resource-driven to innovation-driven,which requires us to keep the idea of innovation in mind and put innovation and development at the core.Innovation concerns every individual,especially as the main body of social innovation,enterprises should adhere to innovation,so as to effectively promote the development and progress of our country.R&D investment is necessary if an enterprise is to carry out innovative activities.As the two most important external factors,market competition and government subsidy are known as the dual drivers of enterprise R&D investment.What effect does the dual drivers have on the specific R&D investment in China's capital market?What are the differences in the impact of different property rights?About the above questions,there are still many inconsistencies in the research of scholars at present.Based on China's capital market,a systematic discussion of this issue is necessary.The article adopts the 2008-2017 Shanghai-Shenzhen A-share listed companies as a research object,and uses the combination of empirical and normative research to discuss the above issues.Firstly,the related concepts and theoretical foundations as well as the previous scholars' research are systematically combed.On this basis,these research hypotheses of this paper are put forward.Finally,the hypotheses were verified by regression analysis and two robustness tests were performed.The main conclusions of the article are as follows:(1)Under the current China's capital market,market competition will significantly promote the R&D investment of enterprises;(2)Government subsidies can be effective incentives for R&D investment;(3)High government subsidies can strengthen the positive correlation between market competition and R&D investment;(4)The regression results show that the positive correlation between market competition and R&D investment is more significant in non-state-owned enterprises than in state-owned enterprises.The research results show that in China's current capital market,market competition is not fierce enough.The effect between market competition and R&D investment of enterprises is closer to "the escaping competition effect".And government subsidies can not only directly promote R&D investment of enterprises,but also strengthen the positive correlation between market cotnpetition and R&D investment.Therefore,the positive significance of government subsidies should be rationally brought into play.The above research enriches the research on the influencing factors of R&D investment,and also shows that the innovation of state-owned enterprises needs to be improved.