The Impact Of Government Subsidies And Financing Constraints On Enterprise Innovation

Along with the world economic development,global competition is becoming more and more fierce,and countries pay more and more attention to innovation.Innovation provides a driving force for promoting high-quality economic development,and the country needs to continue to promote innovation and development.According to the report released by the authority,China’s innovation index ranked 14 th in the world in 2020,which has been significantly improved compared with the past few years.Innovative and R&D mainly depends on enterprises.China has issued many policies to support the development of enterprise innovation,including government subsidies,tax relief,credit support and other means to encourage enterprise innovation and development.Affected by the epidemic,the world innovation pattern has been hit hard,and enterprise innovation has borne huge financing pressure.The resulting financing constraints will inhibit the development of enterprise innovation.Under this realistic background,it is necessary to explore whether government subsidies can break through financing constraints and achieve the purpose of promoting enterprise innovation.In addition,it examines the effects of government subsidies and financing constraints on enterprise innovation in heterogeneous enterprises.This research idea is mainly to solve the following problems: what is the impact of government subsidies and financing constraints on enterprise innovation? Can financing constraints play a good regulatory role? Will government subsidies and financing constraints show different effects in heterogeneous enterprises? And whether the regulatory role of financing constraints in heterogeneous enterprises is different?It summarizes the relevant literature and puts forward the research logic from theory to demonstration according to the theme of the article.Firstly,it expounds the definition and interpretation of government subsidies,financing constraints and enterprise innovation,and summarizes the relevant theoretical basis.Secondly,using the theories of information asymmetry,agency cost and signal transmission,this paper analyzes the ways of government subsidies and financing constraints on enterprise innovation.Then it explores the changes of the effects of government subsidies and financing constraints when fully considering the heterogeneity of enterprises.And obtains the research hypothesis through the analysis of the above problems.Thirdly,select the data of A-share listed companies from 2011 to 2020,obtain the general characteristics of the data through descriptive statistics,test the research hypothesis by using regression model,and further demonstrate the impact of government subsidies and financing constraints on enterprise innovation under the heterogeneity of property right,scale,and region.Finally,it summarizes the regression model and analyzes the possible reasons and puts forward targeted policy suggestions from the perspectives of government and enterprises.Based on the empirical analysis of the whole sample of selected listed companies,it is found that government subsidies help enterprises achieve innovative development,while financing constraints have a significant negative impact on enterprise innovation,and financing constraints can adjust the effect of government subsidies,so as to make this incentive effect more prominent.Then,based on the heterogeneity of enterprise property rights,scale and region,it is found that in non-state-owned enterprises,small and medium-sized enterprises and eastern enterprises,financing constraints have a significant regulatory role between government subsidies and enterprise innovation,but in state-owned enterprises,large enterprises and central and western enterprises,government subsidies cannot promote enterprise innovation by reducing the pressure of enterprise financing constraints.Finally,after summarizing the regression model and analyzing the possible reasons,this paper puts forward some highly targeted and professional suggestions from the perspectives of government and enterprises.