Research On The Influence Of R&D Expense Deduction Policy On Innovation Of Pharmaceutical Manufacturing Enterprises

China is accelerating its pace to the forefront of innovative countries,and stimulating the innovation vitality and improving the innovation capability of enterprises has become a key and difficult point in the high-quality development of innovation in China.As an important incentive measure for enterprises’ R&D activities,the policy of R&D expense addon deduction has received wide attention from academia and society.In the post-pidemic era,the pharmaceutical manufacturing industry,as an important industry related to people’s life and health and national economic development,is more and more concerned and optimistic.At present,domestic pharmaceutical manufacturing enterprises are increasing the research and development of new drugs,improving the quality of drugs and optimizing the structure of drugs to actively respond to the opportunities and challenges.However,there are still problems such as serious homogeneous competition,new drug output mainly based on generic drugs,and weak independent innovation ability.Faced with the current development situation of pharmaceutical manufacturing enterprises,the government should actively stimulate the innovation vitality of pharmaceutical manufacturing enterprises through the policy of add-on deduction,support pharmaceutical manufacturing enterprises to increase their R&D investment and output,and enhance their independent innovation capability.This paper firstly compares the theories of related domestic and foreign literature and finds that domestic and foreign scholars have done a lot of researches on various aspects such as the incentive effect and heterogeneous influencing factors of the R&D cost-added deduction policy.However,there is a lack of research from the perspective of innovation chain to study whether the add-on deduction policy enhances the R&D investment of pharmaceutical manufacturing enterprises on the input side and increases the innovation achievements of pharmaceutical manufacturing enterprises on the output side.Secondly,this paper defines the concepts related to R&D cost-plus deduction,pharmaceutical manufacturing enterprises,and innovation,and analyzes the mechanism of the effect of the add-on deduction policy on pharmaceutical manufacturing enterprises with the help of theories related to market failure,tax incentives,and innovation.Then the policy evolution of the add-on deduction policy is sorted out,and the evolutionary features are summarized according to its focus in different periods,and the problems that arise in the current implementation of the policy are summarized.This is immediately followed by an examination of the current state of development and innovation in the pharmaceutical manufacturing industry to lay the foundation for the empirical analysis below.In the empirical analysis section,this paper takes the panel data of pharmaceutical manufacturing companies from 2016 to 2020 as the research object,and uses the double difference model analysis method to study the impact of the adjustment of the add-on deduction 2018 ratio on the innovation of pharmaceutical manufacturing industry,using the intensity of the add-on deduction for R&D expenses and the total number of patents applied by enterprises annually as the main indicators.On the basis of literature analysis and benchmark regression,heterogeneity analysis is conducted based on the regional location and ownership nature of enterprises respectively,taking into account industry characteristics and enterprise features,and relevant conclusions are drawn.The increase in the proportion of the add-on deduction policy 2018 does improve the R&D investment and R&D output of pharmaceutical manufacturing industry,and the policy has different impacts on pharmaceutical manufacturing enterprises with different ownership nature and regional location.Among them,the adjustment of the policy has insignificant incentive effect on state-owned pharmaceutical manufacturing enterprises and significant incentive effect on non-stateowned pharmaceutical enterprises;the incentive effect on pharmaceutical manufacturing enterprises located in the eastern region is significant,while the effect in the central and western regions is insignificant.Based on the theoretical and empirical analyses,the basic conclusions of this paper are drawn and suggestions are made to improve the incentive effect of the policy.First,the government should increase the policy support and refine the scope of the policy,further enhance the proportion of additional deductions,and expand and standardize the scope of the policy.Then,it should focus on reflecting the preferential and differential policies,so that the implementation and formulation of policies vary according to local conditions and the nature of property rights.Secondly,the government departments should be on high level to optimize the synergy between the policy of adding deduction and other tax preferential policies,so that the policy of adding deduction can play the maximum incentive effect.Policy departments should strengthen interdepartmental cooperation and communication,and improve the tax supervision system to ensure the implementation of the policy.At the same time,pharmaceutical manufacturing enterprises should play an active role,pay attention to the health of capital flow,optimize the allocation of enterprise resources,improve their own management level,and reduce their own tax-related risks.Enterprises should strengthen platform cooperation,pay attention to the introduction and cultivation of human resources,reduce the pressure of enterprise research and development while injecting living water for independent innovation.Based on the above measures,the innovation development of pharmaceutical manufacturing enterprises forms a double synergy between the government and enterprises to promote the innovation and high-quality development of pharmaceutical manufacturing enterprises.