The Impact Of R&D Expenses Plus Deduction On The Upgrading Of Human Capital Of Enterprises

With economic development entering the "new normal" and the continuous development of the era of knowledge economy,human capital has gradually replaced physical capital as the key element of economic and social development.To maintain medium to high economic growth in China,it is crucial to accelerate the accumulation of human capital,improve the knowledge and skills of workers,and realize the transformation from a labor-driven economy to a human capital-driven economy,so that human capital can become the new engine of China’s economic growth in the future.At present,China’s human capital structure problems are more prominent,the shortage of high-end R&D talent and skilled talent has become the biggest constraint facing innovation development and transformation and upgrading.To this end,the National 14 th Five-Year Plan points out that we should stimulate the innovation vitality of talents,enhance the innovation ability of enterprises,and further strengthen the status of enterprises as the main body of innovation.As an enterprise income tax incentive to encourage enterprise innovation,R&D expense plus deduction has a wide scope and a strong policy universality,so it has long been concerned by many scholars,and there are countless researches on the effect of the policy of deduction.However,most of these studies have focused on its effects on physical capital such as enterprise innovation,enterprise performance,and R&D investment.Therefore,this paper constructs a quasi-natural experiment by combing through the existing extensive literature related to R&D add-on deduction and human capital,and constructs a quasi-natural experiment based on the exogenous event of increasing the percentage of R&D add-on deduction from 50% to 75% in 2018,and analyzes the financial operating data of Chinese non-financial listed companies from 2016 to 2020 using the double difference method,and performs regression analysis on the experimental and control groups to analysis to verify whether there is a correlation between R&D expenses add-on deduction policy and firms’ human capital.Through literature research method,theoretical analysis and empirical analysis,this paper finally comes to the following conclusions: the policy of R&D expenses plus deduction can positively promote the upgrading of enterprises’ human capital level.The analysis of the mechanism of action shows the channels through which the additional deduction affects the upgrading of enterprises’ human capital: first,by reducing the cost of the company’s scientific research investment,the company can solve the problem of insufficient funds in the process of business development,encourage enterprises to increase their R&D investment,and technological innovation will promote enterprises to recruit or train higher skilled talents to match with it,thus promoting the upgrading of enterprise human capital.The second is to improve the knowledge and skills of individual employees by improving internal education and training.Since R&D expenses have the feature of add-on deduction compared with general expenses,enterprises can revitalize existing human resources through training,enhance their working skills and integrate them into the company’s R&D team to realize the conversion of low-skilled labor to high-skilled talents,thus promoting the upgrade of human capital accumulation.Further analysis reveals that the R&D expense deduction policy has different incentive effects on enterprises of different sizes and nature.The study shows that the add-on deduction policy has a more pronounced effect on human capital upgrading for small and medium-sized enterprises and non-state-owned enterprises.The research of this paper provides ideas for the government to further refine and improve the tax incentive policy,which is conducive to the government to introduce more differentiated incentives and improve the policy accuracy,and also helps to encourage companies to study the policy document of the additional deduction in depth and grasp the tax incentive dividend.At the same time,this paper puts forward some suggestions on the development of human capital in the new era from the following four perspectives: firstly,increase the preferential policy of R&D expenses with deduction;secondly,pay attention to the training of R&D personnel and increase the investment in education and training of enterprises;thirdly,improve the supporting system and measures related to human capital;fourthly,strengthen the management of human capital investment of enterprises.The innovation of this paper is mainly reflected in the following two aspects: First,the innovation of research perspective.First,the research perspective is innovative.The research on R&D expense deduction policy has always been a hot topic,but the issue of human capital is also of great practical significance in the context of the current new economic normal.In the past,most of the scholars’ research on R&D expense deduction policy emphasized the influence of physical capital on enterprise behavior,while this paper focuses on human capital for research and analysis,and analyzes the influence of tax policy on enterprise human capital through empirical evidence;secondly,in the research method,this paper adopts model double difference model for empirical analysis,which can effectively avoid the endogeneity of the policy,and also conducts empirical analysis on different The paper also analyzes the heterogeneity of enterprises with different ownership and size,and tests the mechanism of accelerated depreciation policy affecting employment size.We also test the mechanism of accelerated depreciation policy affecting employment size and verify the impact of tax incentives on human capital upgrading from a microscopic perspective.