The Impact Of Government Subsidies On Enterprise R&D Output

In recent years,as an emerging economy with rapid economic growth and increasing overall national strength,China is currently in a critical period of economic transformation.To achieve sustained economic prosperity and improve the international market core competitiveness,China must gradually adjust its industrial structure,move towards an economic development model driven by innovation,and realize the transformation from a big exporting country to a strong exporting country.The suggestion of 13 th Five-year Plan pointed out that technology innovation should play a leading role in comprehensive innovation,affirming that the enterprise is the main part of innovation investment and the power of promoting social scientific and technological progress.It is necessary to highlight the enterprise’s dominant position in technological innovation.However,due to the limited financial strength of the enterprise itself,the government needs to increase public expenditures to support the company’s Research & Development(R&D)activities at the same time.In practice,whether government R&D funding for enterprises can truly exert its incentive leverage-effect to ultimately improve the level of R&D output of enterprises is the core of this paper’s research.Based on the theory of externality,public goods and information asymmetry,this paper This article expounds the necessity of government R&D subsidies from a theoretical perspective and sorts out the existing experience research of domestic and foreign scholars.In empirical terms,first of all,a mechanism analysis of the impact of government subsidies on R&D output is made and three hypotheses are proposed.Select the micro data from "China Industrial Enterprise Database" and "Statistical Yearbook of Scientific and Technological Activities of Industrial Enterprises" between the year 2011 and 2013,choose the number of patent applications as an indicator to measure the level of R&D output,divide the sample enterprises into subsidized and non-subsidized groups,and conduct propensity score matching,thereby solving the endogenous problem such as selection bias of government R&D subsidies.Based on the matched samples,a Difference-in-Difference model is constructed to estimate the net effect of different type of government R&D subsidy on enterprise R&D outputs.By further dividing the subsidy amount and the type of enterprise ownership,the heterogeneous effect of government R&D subsidies was studied.From the results of the regression model of the overall sample,that government R&D subsidies can significantly stimulate enterprises to promote R&D outputs.After further dividing the subsidy quota,the conclusion shows that the incentive effect of government subsidies increase with the increase of the subsidy amount,and the incentive effect of large subsidies are the strongest.After further dividing the ownership of the sample enterprises,the conclusion shows that government R&D subsidies have a significant effect on applications of enterprise patent for private and foreign companies,but they cannot significantly increase the R&D output level of state-owned enterprises.By introducing new product sales revenue as a new explanatory variable,the model is tested for robustness.The model and conclusion are proved to be robust and effective.The intermediary effect is used to test the regression coefficient step by step to test the mechanism of government subsidies affecting the R&D output of enterprises.Finally,this paper puts forward the corresponding policy recommendations from the aspects of national policy environment and system construction and enterprises themselves.