Impact Of Innovation Subsidy On Technological Innovation Of Agricultural Products Processing Enterprises

Improving development ability of agricultural products processing enterprises is an important guarantee and boost factor to solve the "three rural problems",to realize the structural reform of agricultural supply side,and to implement the strategy of rural revitalization.The improvement of technological innovation capability of agricultural product processing enterprises is the key to improve their development capability.Considering the characteristics of political system in China,it will inevitably lead government to continuously promulgating support policies for technological innovation of agricultural product processing enterprises.However,the government-led technology innovation support policy may have serious drawbacks.Based on the above analysis,this study mainly answers the following practical questions: First,examining the incentive effect of innovation subsidies on the input and output of technological innovation of agricultural products processing enterprises.Second,examining whether agricultural products processing enterprises are only pursuing the increase in the output of technological innovation? Or focus on the dual development of quantity and quality of innovation at the same time? Third,is there a structural imbalance between the distribution tendency of government innovation subsidy and the inducing effects on technological innovation?Based on the above background,this study firstly constructs a theoretical analysis framework of the effects of innovation subsidies on technological innovation input and output based on the uncertainty of technological innovation activities,market failure theory,rent-seeking theory,enterprise behavior theory and enterprise heterogeneity.Secondly,based on the micro-data of Listed Companies in agricultural products processing industry,it analyses the coverage and intensity of innovation subsidies as well as the impact of innovation subsidies,the overall innovation input and output of sample companies,and the matching between the distribution tendency of innovation subsidy and the incentive effects.Thirdly,based on the unbalanced panel data of listed agricultural products processing companies from 2007 to 2016,the paper overcomes the endogenous,heteroscedastic and autocorrelation problems of the model,then accurately evaluates the incentive of innovation subsidy to the innovation input and output of listed agricultural products processing companies.Effectiveness,from two aspects: lagging effect and distortion of resource allocation caused by the distribution tendency of innovation subsidy,and test whether innovation subsidy causes enterprises to carry out low-quality strategic innovation and reduce substantive innovation,and comprehensively evaluate the actual performance of innovation subsidy on innovation input and output of sample enterprises.The main conclusions include:Firstly,the implementation of innovation subsidy is gradually increasing,and the government’s allocation of innovation subsidy funds is characterized by “supporting the elitist” and “protecting the weaker”,such as the tendency to allocate innovation subsidy to state-owned enterprises,enterprises with strong innovation ability,large non-innovation subsidy income and weak debt-paying ability.Secondly,innovation subsidy has a significant role in promoting innovation investment(the logarithm of R&D investment)of listed agricultural products processing companies,but we must pay attention to the sustained effect and cumulative effect of innovation subsidy.Thirdly,innovation subsidies have a direct promoting effect on the innovation output(number of patent applications)of listed agricultural products processing companies,and will increase innovation output by stimulating sample enterprises to increase innovation input.Fourthly,innovation subsidy will not lead enterprises to adopt strategic innovation and abandon substantive innovation,because innovation subsidy stimulates sample enterprises to increase the application of design patents and invention patents at the same time,but it does require subsidized enterprises to increase the proportion of patent applications in the total number of patent applications.Fifthly,the allocation tendency of government innovation subsidy funds matches well with the incentive effect of innovation input(output),so there is no need to worry about the distorted allocation of innovation subsidies.The main innovations of this study are as follows: Firstly,it is the first time to comprehensively evaluate the current effect,lagging effect and cumulative effect of innovation subsidies on innovation input and output of agricultural products processing enterprises,so as to avoid underestimating the policy effect of innovation subsidies by only examining the current effect of innovation subsidies.Secondly,setting up six adjusting variables,such as enterprise ownership,innovation capability,scale,profitability,solvency and non-innovation subsidy,to determine the distribution tendency of innovation subsidy among different types of enterprises,and systematically and comprehensively evaluating the government’s creation in the light of the difference in the effect of innovation subsidy on innovation input and output of different types of sample enterprises.The structural imbalance between the distribution tendency of subsidies and the incentive effect can be used to evaluate the performance of innovation subsidy policy more accurately.Thirdly,it is helpful to measure the impact of innovation subsidies on the “quantity” and “quality” of technological innovation of sample enterprises,and to effectively answer whether enterprises pursue substantive technological innovation or only increase the “quantity” of innovation.This efforts deepen the understanding of innovation subsidy policy leading enterprises to transform and upgrade.