Research On Impacts Of Fiscal And Tax Policies On R&D Investment In High-tech Pharmaceutical Enterprises

As the process of economic globalization continues to accelerate,countries have realized that only scientific and technological innovation can bring competitiveness and enhance national strength.Therefore,China has continuously increased its investment in science and technology and put forward the slogan of science and technology to become a strong country.At the same time,the increase in birth rates and the reduction in mortality have made the aging trend of countries increasingly serious,and people’s demand for medicine has gradually expanded.To this end,the state has introduced a number of fiscal and tax policies for pharmaceutical companies’ R&D and innovation.It is of great significance to study the impact of these policies.Enterprises’ R&D and innovation activities have the characteristics of positive externalities and uncertainties.In order to avoid market failures and insufficient investment caused by this,government intervention is necessary to promote enterprise R&D.This paper summarizes the impact mechanism of fiscal and tax policies on R&D and innovation of enterprises from the perspectives of cost-benefit and information transmission by sorting out relevant literature.It also summarizes the development situation and characteristics of China’s pharmaceutical industry,analyzes the current situation of pharmaceutical companies’ R&D investment and fiscal and taxation policies.Based on this,this paper collects relevant financial data of 75 high-tech pharmaceutical companies in A-shares from 2013 to 2017.Government subsidies and income tax incentives are independent variables.The effects of fiscal and tax policies on pharmaceutical companies’ R&D investment have been verified.As a result,government subsidies and income tax incentives have the effect of stimulating pharmaceutical companies’ R&D investment.This may be related to the strong,timely and rapid implementation of fiscal policies.In combination with the fiscal and tax policies of some foreign countries,this article proposes the following: First,continue to increase government investment,increase government subsidies,and bring into play The guiding role of fiscal policy.Second,increase the incentives for income taxes,clarify and expand the scope of deductions for additional deductions,increase the percentage of deductions to reduce the income tax burden of pharmaceutical companies.The third is to simplify procedures and relax the conditions for enterprises to apply for tax benefits.