The Influence Of R&D Expenditure Plus Deduction Of Policy Continuous Enjoyment On Enterprise Innovation

Since the beginning of the 21 st century,the rapid development of science and technology and fierce market competition have made scientific and technological innovation become the key force to promote the transformation of the world economy.Therefore,governments around the world have taken measures to launch a series of policies to support enterprise research and development and innovation to promote the development of science and technology.In order to promote innovation,China is actively promoting various preferential tax policies and government subsidies to adapt to the development of the times.In order to encourage domestic enterprises to increase investment in research and development,the government has introduced the policy of adding and deducting research and development expenses,which has been continuously improved and improved since its implementation in 1996,with a view to achieving better results.In May 2017,in order to promote mass entrepreneurship and innovation,the State Administration of Taxation,the Ministry of Finance and the Ministry of Science and Technology of the People’s Republic of China jointly issued policies to increase the pre-tax deduction rate of R&D expenses of technology-based SMEs,in order to promote sustainable economic and social development.In the past few years,in order to support technology-based small and medium-sized enterprises,the government has significantly increased the proportion of R&D expenses deducted from the original50% to the current 100% to better support these enterprises.With the continuous improvement of preferential tax policies,the innovation ability of enterprises has been significantly improved.However,due to the differences in the persistence of additional deductions for R & D expenditure among different enterprises,some enterprises apply for concessions for a long time,while others apply only occasionally.So,will the persistence of different applications affect their innovation performance? Can the continuous application of additional deduction tax policy stimulate the innovation vitality of enterprises more effectively? Taking technology-based small and medium-sized enterprises as an example,this paper selects two listed companies with the same industry and similar scale,but with different persistence of policy plus and deduction,and makes a comparative analysis from three aspects: innovation input,innovation output and innovation efficiency.thus it is concluded that the stronger the persistence of tax incentives,the higher the innovation performance.This may be due to different motivations for enterprises with different durations to apply for additional tax deductions,and the purpose of enterprises that continue to enjoy this policy is likely to be to give enterprises an advantage in the competition through the emergence of innovative ability.The enterprise motivation of non-sustainable enjoyment may be more inclined to reduce the tax burden and thus reduce the cost of the enterprise.After in-depth discussion of this paper,this paper analyzes the impact of different persistence of tax incentives on enterprise innovation behavior,which can provide reference for relevant departments to evaluate the difference of R & D expense deduction effect and promote R & D innovation of enterprises.