Effects Of Fiscal And Tax Incentives On Enterprise Technical Innovation

It is more important for enterprise as the body of innovation activity that how to design fiscal and tax policies scientifically and reasonably in order to drive technical innovation.The paper centring on how to affect enterprise technical innovation for fiscal and tax policies discusses the process and logic of them analysized by the methord:theory——status——empirical test——policy recommendations,by means of literature and theory,threshold econometrics,data envelopment,stochastic frontier and so on,and basing on a lot of literature references about them,to seek incentives on enterprise technical innovation and provide fiscal and tax policies with derictions.The paper contains four main aspects.Firstly,theoretically it analyzes why fiscal and tax policies are able to affect enterprise technical innovation,what government should intervenen ecessarily and effectively,and how fiscal and tax policies affect enterprise technical innovation and stimulate them accurately.While,it studies the mechanism of fiscal and tax incentives on enterprise technical innovation,a basic modle of the incentive mechanism,the positive spill-over effect of them,the non-linear effect of them,and the heterogeneity effect of them.At all,it attempts to build a theoretical analytical framework of fiscal and tax incentives to affect enterprise technical innovation.Secondly,in realism it teases up the evolvement of transformating of the government role and fiscal system since Chinese economic reform,and analysizes the current policies such as the fiscal investment in science and technology,tax credits,and government procurement.While,it finds problems about Chinese fiscal and tax incentives on enterprise technical innovation which have been implemented,furtherly uses for reference which come from experiences of developed countries.Thirdly it makes an empirical study on Chinese fiscal and tax incentives on enterprise technical innovation from the two dimensions of the zone and the industry to reveal their effects that have been produced in the incentive process,and mainly are their positive spill-over effect,their non-linear effect and heterogeneity effect.For example,it tests the spatial relativity between two links of technical innovations basing on an analysis of the value chain in the East,Central and West China by the Moran's I index methord,and develops a linear econometric model of Chinese fiscal and tax incentive effects on enterprise R&D and non-linear econometric model of them by the methord of threshold effect to reveal the rule of fiscal and tax incentive effects on enterprise technical innovation and its threshold nature.Likewise,it tests efficience between technological transformation of and technological transfer basing on an analysis of the value chain both in the high-tech industry and traditional industry by SFA methord,and develops a linear econometric model of Chinese fiscal and tax effects on enterprise and non-linear econometric model of them by the methord of threshold effect.Forthly,the paper does its best to draw research findings and provide policy recommendations.The paper draws conclusions that there is a significant spill-over effect on fiscal and tax incentives to influence enterprise technical innovation,in which two distinguishing features are non-linear and heterogeneity whether in zones or in industry named as the threshold effect of the inverse-U shape or U shape more or less revealed variously in all diffirent zones,industries and stages of the technical innovation.From the dimension,there is what in the zone.Firstly,in the whole China and East China the fiscalinvestment inscience and technology has the crowding-out effect on enterprise technical innovation,but has the incentive effct on it in West China,which is very diffirent from the whole of China,Central and Ester China where fiscal and tax incentives keep the same effect on all the stages of enterprise technical innovation.Secondly,in the whole of China and East China tax cut has the zone incentive effect conditionally on the efficiency of technological transfer but has the obvious crowding-out effect on it of technological transformation.Thirdly,tax cridets on R&D expenditure have obvious effcts on the stages of enterprise technical innovation.In the whole of China,East China and Central China,there are tax cridets on R&D expenditure to help enterprise technological transformation,but in West China to have obviously the distorting effect.While,in the whole of China,West China and Central China,there are tax cridets on enterprise R&D expenditure to help enterprise technological transfer,but in East China not to have obviously the incentive effect which needs enough tax cridets on enterprise R&D expenditure.From another dimension,there is what in the industry.Firstly,in the whole industry the fiscal investment in science and technology has the incentive effect both on enterprise technological transformation and enterprise technological transfer,which all appear obvious the feature of U shape and non-linear relationship,but has the threshold effect of the inverse-U shape on them in the high-tech industry,which is very diffirent from the traditional industry.Secondly,there is,tax cut limit to stimulate enterprise technical innovation behaviours both in the stage of technological transformation and of technological transfer.Remarkably,tax cut has obvious incentive effects both on efficiency of technological transfer in the high-tech industry and it of technological transformation in the traditional industry.Thirdly,tax credits on R&D expenditure have positive effects on the efficiency of enterprise technological transformation,which present N shape trend both in the high-tech industry where marginal efficiency is decreasing and the traditional industry where marginal efficiency is increasing conditionally.Of course,they also affect efficiency of enterprise technological transfer positively both in the high-tech industry and the traditional industry where there are features that it presents obviously marginal efficiency increasing and non-linear relationship,except for the high-tech industry where it appears the unobvious effect.At last,the paper contains four innovation points.Firstly,it is basing on value chain in the process of enterprise technical innovation that it studies effects of fiscal and tax policies on enterprise technical innovation.So,the paper analyzes this effect in much more logical detail than do most studies of this field and therefore creates the explanatory framework.Secondly,a distinguishing feature of this paper is that it studies non-linear and heterogeneity effects of fiscal and tax policies on enterprise technical innovation and test empiricallythem from zones and industries,which should provide targeted references for diffirent stages,zones and industries innovation in the "new normal" economy to implement diffirent fiscal and tax policies.Thirdly,it is the policy tools that how to choose for enterprise technical innovation,such as government investment,tax credits and tax burden level added especially in my study of this paper.So,the study becomes more systematic and dialectic than the other study in this field and has a guild on taxcut policy at present.Forthly,on the basis of the unifying theme of the paper that fiscal and tax policies have non-linear and heterogeneity effects on enterprise technical innovation,the reality of Chinese enterprise technical innovation is analyzed and some advices about fiscal and tax policy for enterprise technical innovation in the "new normal" economy are given,which should help Chinese enterprise innove technology in practice where these policies shoud be differentiated,diversified and exercisable.