Study On The Mechanism Of Using Government R&D Subsidies To Enhance Regional Innovation Performance

18^th CPC National Congress mentioned to adhered the strategy of innovation-driven development,continually increasing investment in research and development?R&D?,in order to become a R&D power.R&D,along with technological innovations which it leads to,are essential part of this strategy.However,the externalities of R&D cannot be ignored.Because of the externalities,the government needs to issue R&D subsidies to encourage innovation.The study on the mechanism through which government issue R&D subsidies to enhance regional innovation performance,can provide a reference for the government to formulate subsidy policies.On the basis of extensive literature and data,this study started with the theories of regional innovation and government R&D subsidies,analyzed the mechanism of using government R&D subsidies to improve regional innovation performance.First of all,the study covered the relative theories,and analyzed the mechanism of using government R&D subsidies to enhance regional innovation performance,and then proposed hypotheses.Secondly,the author designed a model and measured related variables according to the theories and mechanism mentioned.Finally,a regression model was implemented on the data ranging from 2009 to 2016 in China to confirm the proposed mechanism hypothesis.Firstly,the study found that the government R&D subsidies have a significant effect on the improvement mechanism of the regional technological innovation efficiency in the provinces with low R&D subsidies.Secondly,the study also discovered that in the provinces with high R&D subsidies,the government R&D subsidies have a significant effect on the incentive mechanism of regional innovation inputs and promotion mechanism of regional innovation outputs.Therefore,based on the results,the author proposed the following recommendations:the government should increase the proportion of R&D subsidies,and reduce the proportion of non-R&D subsidies.Meanwhile,the government should make use of the leverage effect of R&D subsidies to truly stimulate the regional and enterprise technological innovation.Furthermore,the government ought to pay more attention to regional innovation inputs and outputs in provinces with low R&D subsidies,so the enterprises there will be encouraged to increase their R&D investment under the guidance of government.Only the subsidies are managed well,will the innovation output be increased.For provinces with high R&D subsidies,the government should pay more attention to improving the efficiency of technological innovation,and provide a favorable environment for regional innovation,so that the region will seizes opportunities ultimately to improving the efficiency.Additionally,it is important to optimize the system of government-related R&D subsidies.This study reveals the mechanism of using government R&D subsidies to enhance regional innovation performance.Government R&D subsidies have incentive mechanism for regional innovation inputs,and promotion mechanism for regional innovation outputs,and improvement mechanism for regional technology innovation efficiency.Through empirical tests,it is found that the government R&D subsidies have significant different effects on the improvement mechanism of the regional innovation performance in the provinces with different R&D subsidies.