The Influence Of R&D Expenses Plus Deduction On R&D Investment And Enterprise Performance

The report of the Nineteenth National Congress of the Communist Party of China made it clear that the primary driving force for development is innovation,and emphasized the strategic position of innovation in China's economic development.To establish a technological innovation system,enterprises must be the main body.At the same time,they must not be deviated from the market.Integration will help small and medium-sized enterprises(SMEs)to innovate and accelerate the transformation of scientific and technological achievements.Technological SMEs are the main body of scientific and technological innovation.The impact of research and development expenses plus deduction on such enterprises is of great significance for stimulating enterprise innovation and promoting economic restructuring.The additional deduction for R&D expenses is a preferential tax policy for corporate innovation.In May 2017,the "Notice on Increasing the Pre-tax Deduction Ratio for R&D Expenses of Technology-based SMEs"(fiscal policy [2017] No.34)was formally issued.The policy was formulated for technology-based SMEs,and it stipulated that from January 1,2017 to December 31,2019,the proportion of R&D expenses deductions increased from the previous 50% to the current 75%,improving tax incentives.In 2018,in order to further encourage enterprises to increase R&D investment and improve the level of independent innovation of enterprises,fiscal policy [2018] No.99 stipulates that all enterprises can enjoy the policy of increasing the deduction ratio of R&D expenses to 75%,instead of being limited to technology-based SMEs.Whether fiscal policy [2017] No.34 has an incentive effect on R&D investment and enterprise performance of technology-based SMEs remains to be tested empirically later.Based on the new perspective of increasing the proportion of R&D expense super deduction under the background of national implementation of innovation-driven development strategy,this paper first studies the evolution of China's R&D expense super deduction policy,especially the fiscal policy [2017] No.34 issued by technology-oriented SMEs lays the policy basis for the following analysis.Secondly,analysis based on Schumpeter's innovation theory,market failure theory,tax incentive theory,provides theoretical support for research hypotheses,and innovatively incorporates financial performance into the existing framework of research and development of deduction policy effects of R&D expenses,which makes the evaluation of the policy more comprehensive.Thirdly,the technology-based SMEs from 2015 to 2017 were selected as the research objects in the New OTC Market.After sample selection,this paper uses the propensity score matching-double difference model(PSM-DID model)to empirically test the effect of fiscal policy [2017] No.34 on R&D investment and enterprise performance of technology-based SMEs.It can be seen from the empirical results that the additional deduction of R&D expenses has a significant positive impact on the company's R&D investment and innovation performance,but its impact on the company's financial performance is not significant.Finally,combined with the conclusions of this article,the problems found are analyzed,and suggestions are made from the two dimensions of government and enterprise,which will help our country to further improve the R&D cost plus deduction policy,which has a certain significance for stimulating the innovation of technological SMEs.