R&D Expenses Addition Deduction,Financial Distress And Enterprise Innovation

Innovation is the ballast stone of the development of enterprises and an important booster of economic and technological development of the national.In order to encourage enterprises to innovate,the Ministry of Finance and the State Administration of Taxation have revised and supplemented the R&D expenses addition deduction policy for many times since it was promulgated in 1996.The country attaches so much importance to enterprise innovation,but is the purpose of R&D expenses addition deduction policy really realized? In recent years,due to the impact of the domestic and foreign economic environment,some enterprises in China have encountered financial distress.In this context,will the effect of R&D expenses addition deduction on enterprise innovation be affected? At present,there are abundant researches on the impact of R&D expenses addition deduction policy on enterprise innovation.However,scholars have different conclusions on the impact of R&D expenses addition deduction on enterprise innovation.Moreover,there is a lack of research on the specific impact relationship among R&D expenses addition deduction,financial distress and enterprise innovation.Therefore,this paper selects the sample data of China’s A-share listed companies from 2016 to 2021,and empirically studies the impact of R&D expenses addition deduction on enterprise innovation from the three dimensions of enterprise innovation input,innovation output and innovation efficiency.On this basis,this paper deeply analyzes the role of financial distress in the relationship of R&D expenses addition deduction and enterprise innovation,and then discusses in detail the differences in the impact of R&D expenses addition deduction on enterprise innovation input in the context of different property rights,different life cycles,different industries,etc.This paper finds that:(1)R&D expenses addition deduction can significantly improve enterprise innovation,because it has a real incentive effect on enterprise innovation input,innovation output and innovation efficiency.(2)Financial distress moderates the relationship between R&D expenses addition deduction and enterprise innovation,that is,financial distress can inhibit the positive effect of R&D expenses addition deduction on enterprise innovation investment,but it can enhance the positive incentive effect of R&D expenses addition deduction on enterprise innovation output and innovation efficiency.(3)The positive effect of R&D expenses addition deduction on enterprise innovation investment is more significant in private enterprises,mature enterprises,high-tech enterprises and the tertiary industry,but is not significant in growing period enterprises,the primary industry and the secondary industry.Finally,based on the above research conclusions,this paper puts forward corresponding suggestions on how the R&D expenses addition deduction policy can effectively promote enterprise innovation.On the one hand,policy-making departments can continue to appropriately increase the R&D expenses addition deduction incentives,promote the R&D expenses additional subsidy policies,and improve the intellectual property protection system;on the other hand,enterprises can actively use the R&D expenses addition deduction policy to innovate,actively create a good innovation environment,and attach importance to personnel training.