The Impact Of Government Subsidies On Enterprise R&D Investment

Enterprise R&D activities are the way to achieve scientific and technological innovation,and how much capital is invested in R&D determines the development of technological level.Many countries are stepping up their investment in scientific research to enhance their competitive advantage.In recent years,the Chinese government has attached great importance to supporting corporate innovation and R &D activities.By subsidizing corporate R&D activities,it aims to incentivize enterprises to increase R&D investment,promote enterprises to master core technologies through innovation,and improve the level of technological innovation.However,the research on the policy effects of government R&D subsidies is inconsistent.After combing relevant domestic and foreign research literatures,it is found that there are three different research conclusions about whether the government's R&D subsidies for enterprises can promote enterprise R&D investment.This paper draws on the contingency theory of management science,using R&D risk as a contingency factor,and constructing an analysis framework of the government's R&D subsidy policy effect,and proposes that the government's R&D subsidy policy effect depends on the financial constraints risk,talent constraint risk and different intellectual property protection risk faced by the enterprise.This article selects listed companies from 2008 to 2017 as the research object,and explores whether government subsidies can help reduce the company's capital risk,R&D talent constraint risk,and the effect of government subsidies on enterprise R&D investment under different degrees of intellectual property risk.The empirical research in this paper shows that:(1)government subsidies can alleviate the capital risk of R&D activities of enterprises,and can effectively promote enterprises to increase R&D investment,and there is a squeeze effect;(2)government R&D personnel subsidies help enterprises attract and hire more R&D personnel,but for companies with low R&D talent constraints,government R&D personnel subsidies may replace the company's own R&D investment,showing a crowding-out effect;(3)When regional enterprises with low legal system environmental indexes face high intellectual property risks,the government's R&D subsidies becomes an alternative mechanism,which promotes the increase of R&D investment of enterprises.Therefore,this article proposes to increase the government's input and scope of enterprise R&D activities,follow up the supervision of subsidy funds,and choose post-subsidy methods.Through financial support for corporate R&D activities,the government should strengthen and improve the intellectual property protection system,speed up the marketization process,and create a good environment for corporate R&D investment while mitigating the financial risk of corporate R&D activities and the risk of R&D talent constraints.