Research On The Impact Of R&D Expenses Additional Deduction On Total Factor Productivity Of Manufacturing Enterprises

Under the background of supply-side structural reform in the new era,the characteristic of China’s economy is gradually changing from high-speed to high-quality.Scientific and technological innovation is the core driving force for promoting the quality,efficiency,and power changes of the economy to achieve high-quality development.Manufacturing,as one of China’s basic pillar industry,plays a key role in the development of the national economy.In recent years,the economic growth rate of China’s manufacturing industry has begun to decline gradually,ranking at the bottom with a sign of "big but not strong".Therefore,encouraging the R&D and innovation of the manufacturing industry so as to achieve technological progress has become an inevitable requirement to gain high-quality development of the manufacturing industry.In this new era,Total factor productivity can be used to measure the technological progress and production efficiency of enterprises as well as the quality of economic growth.Tax authorities will increase the implementation of tax incentives and carry out other policies to improve the total factor productivity of enterprises.Specific tax policies for R&D innovation play an important role.Therefore,it is necessary to explore the impact of additional deduction of R&D expenses on the TFP of manufacturing enterprises,which is of great significance for promoting high-quality economic development.This article takes the preferential tax policy of the additional deduction of R&D expenses as a breakthrough point,takes listed manufacturing companies as the research target,and combines the theoretical analysis method and empirical researching method to qualitatively and quantitatively analyze the impact of the additional deduction of R&D expenses on the total factor productivity of manufacturing enterprises,which make this article more systematic.The first part introduces the researching background and significance of this article,then it analyzes and comments on relevant research literature both at home and abroad,and points out the innovations and shortcomings of this article.The second part analyzes the relevant theories of preferential tax policies on the total factor productivity of manufacturing enterprises.After defining related concepts and explaining four theories which laid the theoretical foundation of this article,this paper studies and analyzes the impact mechanism of the addition and deduction of R&D expenses on the total factor productivity of enterprises from two aspects:increasing the disposable cash flow of enterprises,promoting their investment and encouraging enterprises to increase R&D investment and form innovative output.The third part analyzes the current situation of the total factor productivity and R&D expense deduction policy in manufacturing.First,describing the level of R&D innovation in the manufacturing industry,measuring and analyzing the current state of TFP in the manufacturing industry in detail,then expounds the application of the R&D expense plus Deduction Policy of manufacturing industry,and analyzes the problems existing in the policy in improving total factor productivity of enterprises.The fourth part is the empirical research part of this article.Taking the data of A-share manufacturing listed companies from 2014 to 2019 as samples,this paper constructs a panel two-way fixed effect model and a recursive model of intermediary effect,and empirically tests the impact of the policy of adding and deducting R&D expenses and increasing the proportion of adding and deducting to 75%in 2018 on the total factor productivity of manufacturing enterprises and the intermediary effect of R&D input and innovation output,and robustness test are used to verify the empirical results.In view of the heterogeneity of manufacturing enterprises,this article further explores the differential impact of policies on the total factor productivity of heterogeneous manufacturing enterprises.The fifth part expounds the research conclusions obtained in this article,and puts forward relevant suggestions for China to optimize the tax system and release the innovation vitality of enterprises.This article found that:First,the policy of additional deduction of R&D expenses and the policy of raising the ratio of super deduction to 75%in 2018 have a significant positive correlation with the total factor productivity of manufacturing enterprises at the significance level of 1%.It shows the two policies do encouraged manufacturing enterprises to actively carry out R&D innovation and continue to strengthen their efforts to achieve endogenous technological progress,improving the innovation efficiency and production efficiency of enterprises,and form more output growth.Second,R&D investment do produce a significant mediating effect between the two policies and total factor productivity,while innovation output measured by the number of patent grants failed to pass the mediating effect test.This means that the two policies have brought endogenous technological progress to manufacturing enterprises mainly by increasing R&D investment,which has a positive and significant impact on their total factor productivity.,However,due to the obstruction of the amortization and deduction of capitalized R&D expenditure,the growth of innovation output is not a necessary link for policies to improve TFP,the time lag of the incentive effect of innovation output,and the innovation output measured by the number of patent grants does not play a significant mediating role.Third,there are significant differences in the incentive effects of the two policies on the total factor productivity of heterogeneous manufacturing industries.The incentive effect of the R&D additional deduction policy on non-state-owned,capital intensive and technology intensive manufacturing enterprises in the eastern and central regions is stronger,while the policy of increasing the additional deduction proportion has a greater incentive effect on the improvement of total factor productivity of manufacturing enterprises in the western region.Based on the situation of policy and the research results obtained from empirical tests,this paper puts forward specific exploratory and reasonable suggestions for the country to optimize the tax system and explore effective ways to unleash the innovation vitality of enterprises,including further increasing the proportion of R&D additional deduction,expanding the collection scope of R&D expense and unifying the collection caliber,shortening shorten the amortization period of capitalized R&D expenditure additional deduction,and give preferential policies for differentiation additional deduction to heterogeneous manufacturing enterprises differentiated super deduction preferential policies to accelerate the realization of high-quality economic and sustainable development goals.