Research On The Influence Of Financial Subsidy On Innovation Of Equipment Manufacturing Enterprises

Equipment manufacturing industry is a core component of China’s manufacturing industry and is the basis of national industrial development.It is known as the "industrial mother machine".Its growth and expansion are not only connect the growth of my country’s comprehensive national strength,but also link China’s economic security and national defense security.However,the development of our country’s equipment manufacturing industry has not been optimistic in these latter years.From the perspective of the industry,the industrial development lacks the support of key core technologies,the supply of low-end and medium-end products is excessive,and the supply of high-end products is insufficient.Innovation has become a key factor that limit the growth of the industry.From the external of the industry,the high-end reflux of developed countries,the low-end diversion of developing countries,and the spread of the new crown epidemic have undoubtedly made the development of my country’s equipment manufacturing industry worse,and industry innovation is imminent.In just a few years,our government has actualized a series of measures to support enterprises in the industry,hoping to drive the improvement of the overall innovation level of the industry through the improvement of the innovation capabilities of companies located in the industry,hope to realize the effect of replacing the big with the small and bringing the area to the point.The most typical example is financial subsidies.Its timeliness,directness,and ease of use are favored by the government and are widely used to support innovation in equipment manufacturing enterprises.So,whether the coverage of the policy can reach the intended effect,and where the subsidy focus of the policy should be placed,remains to be discussed in depth.Based on the above matters,this paper adopts a combination of theoretical and empirical analysis,combined with the relevant data of equipment manufacturing listed companies from 2012 to 2020,to analyze the impact of financial subsidies on the innovation of equipment manufacturing enterprises.Based on the theory of enterprise technology innovation,externality and government intervention theory,information asymmetry and signal transmission theory,The necessity and importance of financial subsidies to support enterprise innovation are analyzed first,and sorts out the influence mechanism between the two.Secondly,based on the policy documents of the Ministry of Finance,the Ministry of Industry and Information Technology and other correlative branches and the correlative data of the equipment manufacturing industry above designated size,the current subsidy policy of my country’s equipment manufacturing industry is compiled and summarized,and the current status of subsidies and innovation about our country’s equipment manufacturing industry is analyzed.Finally,the fixed effect model and the mediation effect model are used to analyze the impact of financial subsidies on the invention of equipment manufacturing companies,and the method of group regression is used to analyze the heterogeneity of financial subsidies affecting the innovation of equipment manufacturing enterprises,in order to clarify the focus of financial subsidies,make our policies more targeted.The study conclusions of our paper are as below:（1）At present,the overall innovation capability of China’s equipment manufacturing industry is on the rise.The industry’s R＆D investment and R＆D output have both increased,but the industry’s innovation capability is still weak,mainly manifested in invention patents growth rate is slower.（2）At present,the subsidy policy of Chinese equipment manufacturing industry still requires improve.Many problems such as scattered policy distribution,lack of systematic and continuous policy,low policy transparency,and unclear subsidy focus and subsidy principle have seriously affected the policy effect of subsidies.（3）Financial subsidies can validly promote the innovation of equipment manufacturing companies.The injection of financial funds can ease the internal and external financing constraints of enterprises during R＆D,and put forward the increase of research input and researsh output of companies,and there is an intermediary relationship between them.（4）There is significant heterogeneity in the impact of financial subsidies on the innovation of equipment manufacturing enterprises,and the stimulatory effect of financial subsidies on enterprise innovation is more remarkable in private enterprises,high-end industries,and the central and eastern regions.To sum up,the current implementation of my country’s financial subsidy policy is effective and can significantly promote enterprise innovation,but it still needs further optimization.Clarify the focus and principles of financial subsidies,optimize the subsidy structure;establish a subsidy incentive mechanism,and improve the top-level design of the policy;strengthen the construction of the policy legal system and enhance the transparency of the policy;These are important development directions of China’s future fiscal policy.