Effects Analysis Of Financial R&D Subsidies On The R&D Input And Output Of The Enterprises Listed On SME Board

As we all know,innovation is the primary driving force behind development and R&D is the path of innovation.Enterprises are the central pillar of strength for the construction of national innovations and creations.SME board gathers lots of enterprises with high degree of independent innovation,which is very important to build China into a manufacturer of quality.R&D activities are critical to the long-term development of the enterprises.But because of the market failure and externality caused by the enterprises'R&D activities,the level of enterprises'R&D falls into the predicament of the lack of investment inevitably.Therefore,the government is supposed to provide some proper guidance by adopting a variety of means.As one of the manifestation forms of the government exercising public power,financial R&D subsidies is an important means to intervene in the R&D activities of enterprises.In conclusion,a study on the effects of financial R&D subsidies on the R&D input and output of the enterprises listed on SME board has practical significance.The framework of this paper is as follows.The first part introduces the background and significance,concept of R&D and financial R&D subsidies,method,innovation and limitation of this research.The second part provides the theoretical basis of government intervention on enterprises' R&D activities and the existing research in the discussion about the relation between financial R&D subsidies and enterprises' R&D activities.The third part introduces the typical facts of financial R&D subsidies and enterprises'R&D activities.The fourth part describes how the financial R&D subsidies affect enterprises' R&D activities.This part outlines the different paths that how the financial R&D subsidies influence the R&D activities of the enterprises listed on SME board,from direct and indirect perspective.The fifth part is a case study of the effects of financial R&D subsidies on the R&D activities of the enterprises listed on SME board.Besides,this paper uses the intensity of R&D as input and three forms of patent applications as output.And then by applying FE+IV and panel data Tobit model,the author measures the effects of financial R&D subsidies on the R&D activities of the enterprises listed on SME board.The sixth part concludes the research results and then gives some suggestions accordingly.The research conclusions of this paper are as follows.The financial R&D subsidies does not promote the R&D input of the enterprises listed on SME board,but has a significant positive impact on the invention patent applications.From the perspective of different industries,financial R&D subsidies only stimulates the R&D input of medium-tech enterprises.Besides,financial R&D subsidies promotes the increase of the applications of invention patents with high technology content in medium-tech and high-tech enterprises.No matter from the perspective of total samples or sub-samples,financial R&D subsidies has no significant impact on the applications of non-invention patents with relatively low technology content.The innovation of this paper is mainly reflected in the following three aspects.Firstly,the author sorts out the financial R&D subsidies of the enterprises listed on SME board manually,which can effectively solve the problem of incentive effect deviation of financial R&D subsidies.Secondly,this paper simultaneously analyzes the impact of financial R&D subsidies on R&D input and output of the enterprises listed on SME board.In the existing studies,scholars pay less attention to the impact of financial R&D subsidies on R&D activities of listed enterprises on SME board.Moreover,there are few studies that analyze the comprehensive impact of financial R&D subsidies on enterprises' R&D input and output at the same time.Finally,since the number of enterprises' patent applications presents a mixed distribution of zero values accumulation and continuous positive values,OLS estimators may be inconsistent,so panel data Tobit model is selected for estimation.In the existing studies,this model is rarely used to estimate the impact of financial R&D subsidies on enterprises' R&D output.