Research On The Incentive Effect Of Tax Preferences To The Innovation Of IC Industry

In today’s society with rapid technological development,the IC chip,as the foundation and key of the information industry,is an important power system in the information age.After decades of development,China’s IC industry has made great progress.Now it is in a critical period of transformation and development,but the road of transformation is restricted by many factors.The current scale of China’s IC industry is large but not strong.It lacks high-end talents,core technologies and key components.Especially in the context of Sino-US trade frictions,the United States,Japan,South Korea and other countries have imposed a blockade on China’s IC products and technologies.Therefore,enhancing the innovation capability of China’s IC industry is the key to seeking breakthroughs in the future.Enhancing the value of the industrial chain of IC will help the industry’s technological innovation and at the same time enhance its competitiveness.In order to stimulate the IC companies to actively implement innovation activities,the government has promulgated many preferential tax policies,including related industries in the IC industry chain.Therefore,the coverage of preferential tax policies on the IC industry chain is also expanding.Then,does the tax incentive policy encourage the IC industry to carry out innovation activities and improve its innovation performance? Therefore,based on the perspective of industrial value chain,the paper mainly studies the following issues:First,whether the tax incentive policies encourage the IC industry to increase innovation input;second,can the existing preferential tax policies improve the efficiency of innovation output of my country’s IC companies;whether the tax incentive policy has a vigorous effect on the innovation output of the IC industry;third,are there differences in the incentive effects of tax incentives on the three major industries?Firstly,read a lot of the literature of experts in this field to understand the research process of the subject.Then,with the support of externality theory and industrial value chain theory,it talks about the innovation incentive effect of tax preferential policies on the IC industry.Secondly,the paper discusses in detail the current development status of China’s IC industry.It also summarizes the challenges it faces and the drawbacks of preferential tax policies.Then,establish fixed-effect models and perform regression analysis on the data of listed IC companies from 2014 to 2019 to test the innovation impact of the IC industry,and consider whether the combination of local policy support and tax incentives is beneficial to stimulate the IC industry innovative vitality,and discuss divisions preferential tax policies for industries of innovation incentives.The empirical results show that there is a significant positive correlation between preferential tax policies and the IC industry in 2014-2019,that is,preferential tax policies can stimulate the innovative development of the IC industry.In detail:(1)Preferential tax measures can encourage the IC industry to increase investment in innovation.But there is no significant encouragement with the company’s R&D personnel;(2)There is a significant positive correlation between the existing preferential tax policies and the innovative output of IC companies;(3)Research indicates that the combination of tax incentives and local support policies can significantly stimulate the investment of talents in the IC industry;(4)The analysis of the heterogeneity of the industries shows that tax incentives have a significant positive impact on the IC encapsulation industry,and the innovation incentive effect on the design industry and manufacturing industry is relatively small,and there are differences in incentive effects between industries,which are not in line with the industrial upgrade path of the integrated circuit industry value chain.Finally,the paper summarizes the theoretical and empirical research conclusions,combined with the development experience of advanced countries and regions in IC,and put forward suggestions to improve the relevant tax preferential policies of China’s IC industry.