Tax Incentive Effects Of Technological Innovation Of Chinese Enterprises

Technology is the source of prosperity, the first productivity and the mainrepresent and symbol of the advanced productivity. Science and technology hasbecame the decisive power of economy development in every country and became themost important sign of Comprehensive national strength. To come up with theopportunity and challenge that the technology innovation brings, our strategy choicein the transformation period is to take great effort to develop science and technologyand enhance independence innovation ability.The technology innovation of company is the basis of the national technologyinnovation. Our enterprises play more and more important roles in the innovation, andthe investment are growing through the opening up. But compared with developedcountries, there's still a huge gap. So, keep improving the technology innovationability is imperative under the situation and provide a kind policy environment is themost important and urgent mission. Due to the tax great effective of themacro-economic adjustment and control, it is used commonly in every country toencourage the technology innovation. In china, there are a series of tax policiesestablished in succession for this purpose, especially lately. Under this historybackground, a study on the tax incentive effectivity of the technology innovationoverall and deeply is good to establish the technology innovation tax policy andincrease the incentive effect of tax policy correctly that make significant sense inpractice.Based on the conclusion of domestic and abroad research, this paper analyzes theenterprise tax policy mechanism and incentive effect of technology innovation both intheoretic and empirical aspects. First, we analyze the theory of tax policy mechanismand incentive effect in enterprise teclmology innovations; then, the publishedinformation of listed company and the data of investigation questionnaire arecollected to a further empirical study of factors that take effect. The main conclusionand contribution of this paper are listed as follows: 1.We bring forward a "three-force model" including endogenous drive, enterpriseability and exogenous compelling force, which take effect in the technologyinnovation investment. Then another "enterprise technology innovation-tax policyefficiency" analysis model is constructed on it. The endogenous drive is affected bytax incentive through increasing the expected revenue of enterprise technologyinnovation and sharing the innovation risk. The positive effect it brings to theinnovation capital supply and human resource capital demand will ameliorate theability of technology innovation, benefit drive and competence sustain, at last affectthe decision of innovation investment and reach the policy aim of tax incentive onenterprise technology development.2.We use the empirical method to analyze the efficiency of technology tax policy inour country and compare the incentive intensity of different kinds of privilege taxtools and the main factors that baffle the tax efficiency of technology innovation. Theconclusion achieved: privilege tax policy the government settled in our country has apositive incentive effect on R&D investment and different kind of tax play differentroles, especially the transaction tax which takes the most important incentive part. Theimplement of productive value added tax, tax preference for the great technologicalimprovement lacking to the traditional industry, the support of the tax policy which islack of R&D and the foreign invested company, the foreign companies' exceedingnational treatment have been the critical factor to impede the technological innovationtax political effect. To continue the function of the tax preference to promote companytechnological innovation need to have new political reason and concretemeasurement.3.The suggestion to further innovation and improve technological innovational taxincentive policy contains:(1)Focus on the company earnings' preference, transformingfrom income tax on enterprises (2)Transform from productive value added tax toconsuming value added tax.(3) Strengthen the way of tax based preference.(4) Putmore emphasize on R&D programmes.