The Research On The Effect Of Innovation Policy On Enterprise Innovation

As China's economy has been transitioning from a phase of rapid growth to a stage of high-quality development,innovation has become the primary driving force behind development.Innovation is essentially an economic activity led by micro-enterprises.The enterprise innovation activities are characterized by the inseparability of the innovation process,the non-exclusiveness of innovation revenue,and the uncertainty of innovation results.It requires government intervention to compensate for market failures.How to effectively use the government's innovation policy to promote enterprise innovation is an important issue that needs to be studied and resolved in order to grasp and lead the new normal economic development.This paper focus on China innovation policies for enterprise technological progress and high-tech industrialization,such as Innovation Subsidy,High-tech Enterprise Identification and Science Park(High-tech Industrial Development Zone and Economic and Technological Development Zone).We try to evaluate the performance of these innovation policies,analysis the mechanism and make suggestion for improving government innovation incentive policies.Firstly,this paper examines the impact of China's innovation subsidy policy on enterprise innovation.The empirical results show that innovation subsidy can significantly promote the innovation investment and substantive innovation output after control the effect of non-innovation subsidies.The innovation subsidy significantly increases the innovation input of private enterprises and the innovation output of state-owned enterprises.We also find,innovation subsidies have a significant incentive for young enterprises and enterprise executives with research and development background.Further mechanism analysis validates the signal transmission mechanism of innovation subsidy.When enterprises receive the innovation subsidy,they can release positive signals to get more social resources.Secondly,based on the Measures for the Administration of High-tech Enterprise Identification issued in 2008,we collect the data of A-shared listed companies from 2008 to 2015,use the method of propensity score matching to examine the impact of high-tech enterprises identity policy on enterprises' innovation and profitability.The results show that the identity policy significantly increases high-tech enterprises'innovation input and output,especially for the substantive innovation output.We also find that the identity policy has a great impact on the innovation and profitability of state-owned enterprises.Like the effect of innovation subsidy,identity policy has a significant incentive for young enterprises and enterprise executives with research and development background.Furthermore,we find that identity policy improves innovation through the innovation subsidy mechanism and tax incentives mechanism.Specifically,the government identity policy provides a credible,externally validated,high quality signal can encourage external market investment and technological cooperation,which lead to more innovation.Thirdly,this paper empirically tests the policy effect of Science Park in China with the main goal of promoting the development of high-tech industries and high-tech enterprises.The results show that if we use patents,invention patents and the total factor productivity to measure the innovation ability of enterprises,the Science Park preferential policies can effectively stimulate the innovation of enterprises,while the regression results of the output value of new products show that Science Park will restrain the innovation of enterprises.Further study on the interaction between Science Park and the scale of enterprises,leading industrial advantages,institutional environment and knowledge diffusion show that:for large-scale enterprises,enterprises in the leading target industries and the Science Park in a more marketized region,enterprises and university research institutes with more closely linked,the policy incentives more obvious.We also find that the Science Park policy does not have a significant impact on finance constraints,but it will increase the competition.In addition,the Science Park policy does not have a significant spillover effect on enterprises outside the region,but the state-level Science Park can indeed drive the increase in the number of patent applications outside the zone.At the same time,the farther the enterprises outside the Science Park,their innovation ability will be lower.Based on the research results,this paper believes that the government should actively support and guide the allocation of social resources to support enterprises'innovation,but it does not directly intervene in the management and autonomous decision-making of enterprises,so that the market plays a decisive role in resource allocation.At the same time,it is necessary to carry out effective institutional reforms,constantly improve and standardize project screening criteria for innovative subsidies,design of high-tech enterprise certification indicators,Science Park access requirements for enterprises.In addition,an assessment platform should be established and actively encourage multiple investments such as venture capital to support innovation and development.