Research On Incentive Of Weaponry And Equipment R&D Investment

Weaponry and equipment research(WER) investment is an important part of equipment construction, while effective WER investment is an important initiative to implement the equipment development strategy. Research on problems of investment incentives on WER has important theoretical and practical significance on many aspects, such as improving the efficiency of the investment on equipment research, perfecting the theory system of equipment economics, and promoting self-development, leapfrog development and sustainable development of weaponry and equipment construction.Through the review of development process of WER investment in our country, it changed from unitary to diverse and gradually showed trends on diversification of investors, funding sources and investment approach. After decades of effort, we gradually established a diversified multi-channel funding system, and formed a new situation that weaponry and equipment technology innovation activities are supported by multiple fundings such as national financial allocations, corporate investment and market financing. However, there are many practical issues and theoretical problems existed during the process of promoting WER investment reform, which can concluded into three aspects: 1) the contradiction between fair competition and admittance barriers; 2) the contradiction between policy encouragement and discrimination; and 3) the contradiction between equipment pricing and R&D compensation. The three aspects run through the entire process of WER investment and are the main contradictions that investment incentives on weaponry and equipment research are facing. Admittance is the start point of WER activities and basic precondition of WER incentive. More qualified investors will only enter WER investment field and form a positive competitive pattern when admittance is equal to all. Fiscal policy is the institutional guarantee to carry out the investment incentives on WER. Technology renovation activities, owning the significant externalities and public products attributes, are important engines to promote WER construction and socio-economic development. These inner attributes and roles require technology renovation activities to obtain financial subsidies and tax incentives, which is also a common practice around the world. Fair policy environment can only be formed to promote effective competition in WER investment field when policy discrimination problem is solved in WER. Investment compensation is the key to ensure sustainable development of WER investment activities. Investment compensation in WER focuses not only on financial and physical capital, but also human capital and intellectual capital. The latter Plays a greater role in WER activities, as compensation of intellectual property rights is more important and has more characteristics which is the end point of investment incentives. The enthusiasm of WER investors can only be fully mobilized to ensure the sustainable development of investment when compensation problem in WER investment is solved. Access, tax concessions and investment compensation constitute the current overall framework of investment incentives on WER, which is also an important part of the theoretical system of investment incentives on WER in our country.To solve the access problem, on the basis of behavior analysis and game analysis of the stakeholders in WER investment, we applied Agent technology to the decision-making process of the investment access with the help of complex system modelling, built an Agent model of WER investment access, and simulated the process of investment access with empirical data. According to the results of simulation, the incentives should start from the influence of market structure and competitive efficiency caused by entrants participating in WER investment access, consider the equipment market structure and the characteristics that private enterprises considered maximize the economic benefits as the business objective, and moderate the access for private enterprises to participate in WER investment. As a matter of fact, our WER investment incentive compensation system can be reformed and perfected by solutions such as breaking the fragmentation pattern to reduce the access threshold, developing professional equipment directory and implementing classification admittance, coordinating military and civilian standards and reducing procedural barriers, building effective information platform and weakening information barriers.To solve the tax concessions problem, based on the analysis of the status of our WER investment system and the incentive effects of fiscal policies to the enterprises involved in WER investment, we further analyzed the effectiveness of tax incentives by empirical analysis. The results showed that tax incentives have a positive effect on WER investment. VAT exemption can really stimulate WER investment growth, but the effect of the incentives has a certain lag, mainly because of the long cycle of tax-refund and the inequality of tax. We can improve the efficiency of the tax incentives through financial support innovation and the development of tax policy to encourage private enterprises participating in WER investment.To solve the investment compensation problem, we found that there are still many defects in our WER investment compensation by analyzing the motivation of compensation and comparing with the main approach of other countries, embodied in that the compensation paid no enough attention to basic research and the way of compensation is unreasonable and so on. We designed the compensation incentive on WER in our country, deduced ratio formulas for fixed compensation and proportion compensation, and put forward the basic ideas for compensation incentive on WER in our country. That is, we can establish and perfect our WER investment incentives by protecting intellectual property rights to encourage participation of private enterprises, implementing risk compensation and strict accountability, taking the civil-military integration patten, and diversifying investment risks. The approach of combining fixed compensation and proportion compensation to design contract, reasonably determineing the portion of fixed compensation and proportion compensation, can promote agents to take the initiative to improve the level of research effort in order to impel WER investment.The three-in-one analysis framework combing access incentives, tav incentives and compensation incentives, 1) enriched and extended the theoretical foundation for incentives of WER investment according to the requirements and the characteristics of the practice; 2) quantitatively analysed the game relations among stakeholders of WER investment access using agent-based simulation method, built a model of stakeholders’ behaviours and stimulated the process of the investment access with empirical data, which provide a reliable theoretical basis and research method for the incentives of investment; 3) conducted a survey of some enterprises and scientific institutes involved in WER investment in Hunan Province, quantitatively analysed the main reason that impact the effectiveness of tax incentive of the investment, and proposed the corresponding countermeasures and suggestions, which provide a more reliable basis for tax incentive of weaponry and equipment research investment compared to qualitative analysis; and 4) enriched the research content on incentive of WER investment in our country by introducing compensation incentive to the incentives of WER investment for the first time, designed the compensation incentive on WER in our country, and deduced ratio formulas for fixed compensation and proportion compensation, which provides a theoretical basis for our WER investment compensation incentives.