Research On The Impact Of Tax Incentives On R&D Investment Of Advanced Manufacturing Enterprises From A Life Cycle Perspectiv

Amid the "manufacturing + information technology revolution," nations worldwide are engaged in a fresh round of international competition centered around their advanced manufacturing sectors.China,as the manufacturing industry’s "giant," has held the top rank globally for 13 consecutive years.Despite its advantage in scale,China’s manufacturing industry still exhibits certain shortcomings,such as low added value,low competitiveness on the international stage,and inadequacies in information technology,which were highlighted in the "trade war" and have become increasingly conspicuous.To significantly boost China’s manufacturing industry’s innovation capacity and improve its international competitiveness,research and development(R&D)activities are essential to enhance its scientific and technological innovation.Taxation is a policy tool used to regulate and direct the economic behavior of micro-level entities.In the general environment of the nation’s vigorous implementation of cost and fee reductions since 2015,China has rolled out numerous tax preferential policies to stimulate investment in advanced manufacturing industry R&D,providing robust support for the country’s advanced manufacturing industry’s development.Scholars have conducted theoretical analysis and research on the incentive effect of tax incentives on enterprise R&D investment from different angles.However,few have investigated the impact of tax incentives on R&D investment from a life-cycle perspective.This study performs a comparative analysis,primarily focusing on VAT and income tax preferences,to examine their effects on R&D investment in companies.Subsequently,based on the outcomes,the study provides specific recommendations.This paper takes a dynamic perspective to explore the efficacy of policies that encourage companies to invest in research and development(R&D).It defines relevant concepts,outlines the current state of companies,and analyses applicable tax policies.With reference to pertinent theories,the study selects 447 listed companies in the advanced manufacturing industry as research subjects,using their panel data from 2017-2021 to investigate the impact of different tax incentives on R&D investments in China.By selecting an appropriate model and combining various stages of development,the study examines the effect of tax incentives on R&D investments.The findings suggest that tax incentives have varying effects on R&D investments in different stages of the business lifecycle,with the most significant impact observed in the maturity stage.Based on the results of the empirical analysis,the study proposes recommendations for improving tax incentives at each stage ofthe business lifecycle.