Research On The Effect Of Government Innovation Incentive Policy For Enterprises

The continuous improvement of the independent innovation capability of enterprises is an important micro-foundation for China to build a modern innovation system and achieve high-quality economic development.However,after many years,there are still not many "high-level innovation" Chinese enterprises that have truly internationally competitive power.The situation that the key core technologies are controlled by foreign companies has not been fundamentally changed.In order to stimulate the innovation vitality of enterprises,Chinese government have intensively introduced various "new policies for innovation",providing enterprises with policy bonuses in personnel training and introduction,industry-university-research cooperation,intellectual property protection,and construction of R&D institutions in enterprises,etc.The efforts of government objectively reduce the innovation costs of some enterprises,and play an important role in improving the innovation vitalities and independent innovation abilities of enterprises.So,are these policies designed scientifically and rationally,and what are the limitations?Why do policymakers(science and technology management officials)design kinds of rewards and subsidies as the main content of incentive policies?What institutional obstacles still exist in promoting enterprises' scientific and technological innovation?China implements a scientific and technological innovation management system that combines "strips and blocks".Science and technology management officials play a special role in the formulation and implementation of innovation incentive policies,and have an important impact on the policy effects.This paper is based on the Chinese government governance structure and the behavior patterns of officials,examines the impact of government innovation incentives on corporate innovation,includes the perspective of the internal incentive structure,the behavior of science and technology management officials,and the game between government and enterprises.First,this paper discusses the functions of the innovation incentive policy,and summarizes the current innovation support policies in the context of China's "strip and block" innovation management system.Subsequently,the innovation incentive policies for enterprises are carefully organized and classified.This paper finds that China is a country with many innovative incentive policies.The policy types are mainly selective innovation incentives,supplemented by functional policies.The high-tech recognitions are the main means of selective innovation incentives,it is to evaluate and identify the advanced nature of the enterprises' innovation achievements and elements,and use this as a basis to give financial incentives or other policy benefits to enterprises.Second,this paper evaluates the effectiveness of China's innovation incentives.From the macro level,it analyses the status of enterprises' dominant role in innovation and the overall implementation of government incentive policies in China.Then,it takes the manufacturing industry in Suzhou as an example to discuss the current situation and problems of enterprises' innovation and,uses the micro-enterprise research data of Suzhou to empirically test the effectiveness of innovation incentive policy.The results show that the incentive policy did not have a significant incentive effect both on the private R&D investment and patent applications.The empirical test based on the sample of Suzhou enterprises did not find evidence to support the significant impact of innovation incentive policies on enterprise innovation.Third,this paper explores the impact of government internal incentive structure on policy makers.Science and technology management officials are included in the research field.We try to uncover the "black box" of policy decision-making mechanism,and to explore the behavior of science and technology management officials under the government's internal incentive and restraint mechanism.This paper believes that the level of regional science and technology innovation is gradually replacing GDP growth and becoming one of the important achievements of officials.The GDP Championship is gradually evolving into an innovation indicator tournament.The various innovation incentive policies reflect the responsibility and innovation spirit of science and technology management officials.However,due to the imperfect incentive and restraint mechanism within the administrative system,scientific and technological officials may choose strategic behavior under the joint action of responsibility,promotion incentive,rent-setting,blame avoidance and other factors.They use high-tech recognitions as the main means of innovation incentive policy,but less use of scientific and technological projects,tax incentives and other policy tools.High-tech recognition is a kind of "strong performance behavior" that can make achievements in a short period of time.It can also relieve the pressure on science and technology management officials and facilitate very few officials' rent-setting activities.Therefore,it is widely used by science and technology management officials and,becomes the main content of innovation incentive policy.The implementations of science and technology projects,high-tech recognitions and tax preferences constitute the main content of the achievements of science and technology management officials.This paper builds a database by collecting Chinese provincial science and technology management officials' information between 2005-2015,empirically examines the factors affecting the promotion of science and technology management officials.The results of empirical tests show that,high-tech recognitions can significantly promote the promotion of science and technology management officials.But government science and technology projects and tax incentives have not shown similar effects.Further tests revealed that the science and technology management officials' promotion mechanism has inhibited enterprises'innovation.This inhibition is regulated by the market environment.In areas with relatively good market governance environment,this suppression effect is not significant.In areas with relatively poor market governance environment,this suppression effect is obvious.Fourth,the research perspective is shifted from policy supply to policy implementation,we examine the impact of government-enterprise games on the effects of innovation incentives.This paper finds that under the existing science and technology management system,different innovation incentive policies have significant differences in project establishment,evaluation,technology review and supervision mechanism.Compared with scientific and technological projects and tax incentives,high-tech recognitions have the characteristics of low risk,high profit,weak supervision and large rent-seeking space,enterprises may be more inclined to achieve the goal of "seeking recognition" through strategic innovation,material packaging,rent-seeking and other behaviors.By constructing the policy expectation and R&D input model,we find that high-tech recognitions are difficult for the enterprises to make accurate policy expectations,and are impossible to effectively apportion the enterprises'R&D costs,this further restricts their incentive role.The empirical test results of the micro-enterprise survey data of Suzhou,found that government science and technology projects and tax incentives have significantly promoted the private R&D investment of enterprises.The high-tech recognition has an insignificant crowding-out effect on the private R&D investment of enterprises.Finally,in response to the above problems,the reform direction of China's innovation incentive system is put forward.The government needs to play its role effectively connected with the market mechanism,and construct an innovative incentive mechanism that respecting market rules.Specifically,the officials need to correctly understand the relationship between government and market in innovation incentives,standardize and improve market mechanism,strengthen the role of finance in supporting and leading innovation,implement government science and technology projects based on competition mechanism,and build a coordinated management system of science and technology innovation.