A Study On The Impact Of Tax Incentives On Corporate Innovation

China has introduced a number of tax policies that are conducive to enterprise innovation,but due to the great investment risk of innovation activities,enterprises have financing constraints,which restrict the normal technological innovation activities of enterprises.Studying the relationship between tax incentives and enterprise innovation from the perspective of financing constraints can help to better play the important role of tax incentives in solving enterprises’ financial difficulties and promoting the gathering of innovation resources.This paper studies the degree of influence of tax incentives on enterprise innovation in the presence of financing constraints.The article takes listed companies in 2011-2020 as the sample,and after combing and summarizing the relevant literature,the research hypothesis is derived from the perspective of financing constraints,combined with theoretical analysis,and verified using a multivariate linear model,aiming to investigate whether tax preferences can alleviate corporate financing constraints and increase corporate innovation inputs and outputs.The regression results show that both VAT and income tax incentives can stimulate innovation by improving the financing problem,among which tax incentives can improve the level of innovation output in the next period by alleviating the current financing constraints of enterprises.By examining the heterogeneity of the sample,the degree and mechanism of the innovation impact of enterprises with different property rights,enterprise types and debt levels are different:(1)the innovation input of non-state-owned enterprises,high-tech enterprises and enterprises with low debt levels are more strongly influenced by tax preferences;(2)the innovation output of state-owned enterprises and highly indebted enterprises are more strongly influenced by tax preferences;however,the innovation output of high-tech enterprises is more sensitive to income tax collection preferential impact is more sensitive,while the innovation output of non-high-tech enterprises is more sensitive to VAT collection preferential;(3)tax preferences alleviate the financing constraints of state-owned enterprises,high-tech enterprises and highly indebted enterprises more strongly;(4)financing constraints play a partially mediating effect in the impact of tax preferences on innovation inputs of non-state-owned enterprises,high-tech enterprises,non-high-tech enterprises and low-debt level enterprises,in non-state-owned enterprises,non-high-tech enterprises and enterprises with high debt levels also play a partly mediating role in the effect of tax incentives on innovation output.Based on the above findings,this paper suggests that the government should accelerate the establishment of a comprehensive tax preference policy system,pay attention to the role of VAT preferences in promoting enterprise innovation,and formulate differentiated tax preference policies for enterprises with different property rights and types;meanwhile,enterprises should seize the tax preference policy dividends to attract more investment funds and increase enterprise innovation efforts.