Does The Government Subsidy Promote The R&D Of LED Packaging Enterprises?

The report of 19 th CPC National Congress proposed to "deepen the reform of the science and technology system,establish a technological innovation system with enterprises as the mainstay,market-oriented,and deep integration of production,education and research,strengthen support for SME innovation,and promote the transformation of scientific and technological achievements." In order to encourage enterprises to research and develop innovation,promote industrial technology advancement,the Chinese government has provided a large amount of subsidies to the LED packaging industry.Has the allocation of financial resources achieved its purpose? The problem is worth exploring.Based on soft budget constraints,stakeholder theory and industry life cycle,this paper selected Hongli Zhihui Group Co.,Ltd.as the case study object.After introducing the policy background,industry background and company situation,this paper studied the impact of government subsidies on R&D innovation of LED packaging enterprises.This paper analyzed the government subsidies and R&D innovations of Hongli Zhihui by using LED industry report,2011-2017 Hongli Zhihui and the similar corporate data,and further analyzed the reasons for the effect in government subsidy.The study found that government subsidies accounted for a small proportion of Hongli Zhihui's R&D expenditure,but Hongli Zhihui's innovation performance in patent achievements and financial performance was better than other companies in the same industry.Government subsidies have a certain role in promoting R&D and innovation of Hongli Zhihui,but the effect is limited.The reason has two aspects.On the one hand,under the pressure of competition,Hongli Zhihui as a private enterprise was more active in research and development.On the other hand,Hongli Zhihui has improved employee motivation through the implementation of equity incentive plan.Then the efficiency of R&D innovation about government subsidies had promoted.Based on the above analysis,this paper put forward corresponding suggestions.This paper had practical significance for revealing the characteristics of LED packaging enterprise R&D investment.It hoped to provide reference for the government to realize the optimal allocation of resources,so as to realize the original intention of the government R&D subsidy to drive the innovation and development of enterprises.