Research On The Influence Of R&D Expense Deduction Policy On Total Factor Productivity Of Manufacturing Enterprises

At present,the world is undergoing profound changes unseen in a century.It is urgent to shift from a factor-driven growth model to an innovation-driven one.Manufacturing industry is the main body of the national economy,innovation is the soul of the development of manufacturing industry,is an inexhaustible driving force for transformation and upgrading.Enhancing innovation capacity in the manufacturing sector and increasing investment in R&D and innovation are important tasks for promoting high-quality development of the manufacturing sector and building China into a manufacturing powerhouse.However,due to the characteristics of externality and uncertainty of innovation activities,the enthusiasm of scientific and technological innovation in the manufacturing industry is discouraged.As a highly targeted tax incentive policy,the policy of additional deduction of R&D expenses effectively reduces the tax burden and capital pressure of corporate income tax,and has a very important impact on enterprises’ investment,operation and innovation strategy choice.Therefore,in recent years,the government continues to optimize the policy for the deduction of research and development expenses,in order to encourage enterprises to innovate in science and technology and form endogenous technological progress through innovation,so as to increase the total factor productivity of the enterprise(TFP)and achieve the high quality economic growth in our country.According to a document issued by the State Administration of Taxation,100 percent of R&D expenses will be deducted across the industry in 2018.The research and development expenses additional deduction policy adjustment,further increase the intensity of tax incentives.Based on the sample data of A-share listed companies in Shanghai and Shenzhen for five consecutive years from 2016 to 2020,this paper takes manufacturing enterprises as an example,adopts the method of differential difference,and takes the re-preferential policy with the increase of the deduction ratio in 2018 as A quasi-natural experiment to analyze the implementation effect of the policy from the perspective of enterprise TFP.The empirical results show that:(1)the increase of R&D expense deduction ratio can promote the increase of TFP of manufacturing enterprises;(2)The significant positive effect of the increase of R&D expense deduction ratio on TFP of manufacturing enterprises is realized through the increase of R&D investment of enterprises;(3)The repreference policy of additional deduction of R&D expenses has different effects on different enterprises.It has better effect on TFP promotion of large-scale enterprises,state-owned enterprises,enterprises in eastern and central regions.Based on this,this paper puts forward relevant policy suggestions from the perspectives of the government’s policy formulation and the establishment of related supporting facilities,in order to provide practical guidance for the government to further optimize the R&D tax policy and improve the total factor productivity of enterprises.Consider the characteristics of different industries and implement differentiated policies;Innovate tax incentive system and optimize tax incentive policy;Improve related supporting measures,give full play to the incentive effect of additional deduction policy;We will create a sound market environment and establish sound mechanisms to protect and encourage innovation.