Research On The Impact Of Chinese Government Innovation Subsidies On Enterprise Innovation

The improvement of enterprise innovation capabilities is an important micro-guarantee for achieving high-quality economic development in China,and it is also the key to building the country’s core competitiveness.In recent years,China’s innovation capability has continued to grow,and its total R&D investment ranks second in the world.However,there is still a large gap of R&D intensity between China and the world’s major developed countries,and some key core technologies are still restricted by others.In order to improve the innovation level and innovation vitality of enterprises,government subsidies have adopted many innovation incentives,and innovation subsidies are one of the main methods.The government’s innovation subsidies have objectively reduced the innovation costs of some enterprises and played an important role in the innovation activities of enterprises.So,have the government’s innovation subsidies effectively stimulated the innovation vitality of enterprises and solved the problem of insufficient innovation vitality? Has it effectively improved the company’s innovation performance? What are the limitations of these innovation subsidies? Under China’s political system,will the effect of innovation subsidies change?This article focuses on the analysis of the impact of innovation subsidies on corporate innovation,and explores the impact of innovation subsidies on innovation vitality,the impact of innovation subsidies on innovation performance,the influencing factors of innovation subsidies,and the influence of government-enterprise relations on innovation subsidies.First of all,this article defines the innovation vitality of the enterprise.By introducing the expected R&D investment of the enterprise,the difference between the actual R&D investment and the expected R&D investment is calculated as a measure of the innovation vitality of the enterprise,and further the enterprise’s innovation vitality is insufficient.Definition,that is,if the innovation vitality is less than 0,it is considered as insufficient innovation vitality of the enterprise.At the same time,this article also constructs a calculation method for the lack of industry innovation vitality and regional innovation vitality from the perspective of industries and regions.After theoretically analyzing the role and mechanism of innovation subsidies in alleviating the lack of innovation vitality of enterprises,this article uses the 2007-2018 Chinese non-financial listed companies to conduct an empirical test on the effects of innovation subsidies.The study found that: at this stage,China’s listed companies have a high degree of insufficient innovation vitality.As of 2018,more than 50% of enterprises are at a level of insufficient innovation vitality.Among them,the central and western regions,traditional manufacturing and sunset industries are particularly prominent.Second,innovation subsidies can effectively alleviate the absolute lack of innovation vitality of enterprises,and at the same time reduce the degree of insufficient regional innovation vitality of enterprises and insufficient industrial innovation vitality.However,for enterprises with a high level of innovation subsidies and enterprises with a high degree of insufficient innovation vitality,innovation subsidies have no significant effect on alleviating the lack of innovation vitality;third,innovation subsidies can alleviate the absolute innovation vitality of enterprises by reducing corporate financing constraints Insufficient,but it is impossible to reduce the lack of regional innovation vitality of enterprises and the insufficient level of industry innovation vitality by alleviating financing constraints.Innovation subsidies may also reduce the absolute,regional,and industrial innovation vitality of enterprises by reducing information asymmetry;fourth,in regions with better economic development,innovation subsidies have a better mitigation effect on regional innovation vitality,but they have a better effect on the industry.Insufficient innovation vitality has no significant regulating effect,and the effects of enterprise high-tech certification on innovation subsidies are all negatively regulating.Secondly,in order to examine the effect of innovation subsidies on the output of corporate innovation,this article explores the impact of innovation subsidies on corporate innovation performance,and divides corporate innovation performance into two levels,and the quantitative level of corporate innovation and quality.In order to analyze the impact of innovation subsidies on both.After theoretically analyzing that innovation subsidies can improve innovation performance,the influence mechanism of innovation subsidies is analyzed and verified.At the same time,it also examines the impact of different levels of innovation subsidies on innovation performance.The study found that: First,innovation subsidies can not only promote the number of patent applications of enterprises,but also increase the number of corporate patents cited.Moreover,innovation subsidies have a better effect on promoting the number of invention patent applications by enterprises than they have on the number of noninvention patent applications.Second,the innovation subsidies of the central and provincial governments can promote the increase in the number of patent applications by enterprises,but the innovation subsidies at the prefecture and municipal level have no effect on the number of patent applications,and their effect on the increase in the intensity of corporate patent citation is also weaker than that of the central government.Innovation subsidies.At the same time,the heterogeneity test of the innovation ability of enterprises shows that the higher the innovation ability of enterprises,the stronger the promotion effect of innovation subsidy on their innovation performance.Third,innovation subsidies can improve their innovation performance by enhancing the innovation vitality of enterprises.Fourth,state-owned enterprises are more willing to carry out strategic innovations than private enterprises,that is,state-owned enterprises are more willing to use innovation subsidies to apply for non-invention patents,but the effect of state-owned enterprises’ use of subsidies to improve the quality of innovation is still better than that of private enterprises.This shows that at this stage There is still a huge gap between the innovation quality of private enterprises and state-owned enterprises.For high-tech companies,they are more inclined to use innovation subsidies to improve their substantive innovation performance,and they are less willing to use innovation subsidies to increase the number of non-invention patent applications.Thirdly,in order to further deepen the research on the impact of innovation subsidies on enterprise innovation,this article analyzes the heterogeneity and appropriateness of the incentive effects of innovation subsidies in detail.This article divides the factors that affect the role of enterprise innovation subsidies into two categories: the external environment and corporate governance,and further determines the six influencing factors,and analyzes the impact of these six factors on the effect of innovation subsidies through theoretical analysis.At the same time,this article also explores the appropriateness of innovation subsidies.The research found that: First: the effect of innovation subsidies on innovation vitality is not affected by the external environment,and regardless of whether there are changes in regional differences,market environment or market competition,the effects of innovation subsidies are effective and significant.However,the incentive effect of innovation subsidies on innovation performance is only significant in the eastern region and regions with a high level of marketization.Moreover,in industries with low market competition,the incentive effect of innovation subsidies on innovation performance is higher than in industries with high market competition.Second,whether the two-time integration has no effect on innovation subsidies to enhance innovation vitality,but in companies with two-time integration,the effect of innovation subsidies is better than that of non-two-time integration companies,and this difference is only reflected in innovation Subsidies increase the number of innovative patent applications by enterprises.Third: In companies with low earnings management,innovation subsidies can effectively enhance the innovation vitality of enterprises and improve their innovation performance,but in companies with high earnings management,this incentive effect is not significant.Fourth,the incentive effect of innovation subsidies is only significant in the growth phase.In the mature and recession phases,innovation subsidies cannot effectively enhance innovation vitality and improve innovation performance.Fifth,whether it is for innovation vitality or innovation performance,innovation subsidies have an inverted U-shaped effect,that is,after innovation subsidies reach a certain level,innovation subsidies begin to inhibit improvement enterprise innovation performance.Fourthly,this article incorporates the relationship between government and enterprise into the research framework of the influence of innovation subsidies on enterprise innovation,so as to make the research more realistic.To this end,this article explores the influence of government-enterprise relations on the incentives for innovation subsidies.This article divides the government-enterprise relationship into two types: political connections and corporate rentseeking,and further divides political connections into central-provincial and prefecture-level political connections.Through theoretical analysis of the influence of government-enterprise relations on the acquisition of innovation subsidies,it also analyzes the influence of government-enterprise relations on the incentives of innovation subsidies,and examines two mechanisms for regulating the relationship between government and enterprises and the nonlinear regulation of rent-seeking behavior.The research found that: First,whether it is political connection or rent-seeking behavior,it can help companies obtain more innovation subsidies,but only the central-provincial political connection can effectively help companies obtain subsidies.Receiving innovation subsidies does not help.Second,in the full sample,political connections can help companies better use innovation subsidies to increase the number of companies’ innovation patent applications and the intensity of innovation patent citations,but the role of corporate rent-seeking behavior is not significant.After the large-scale anticorruption campaign started in 2013,the market environment and political environment have changed,and political connections and rent-seeking levels have declined.Rent-seeking behavior has a significant negative regulatory effect on innovation subsidies to increase the number of patent applications.Third,whether it is the amount of patent applications or the intensity of patent citations,the incentive effect of rent-seeking behavior on innovation subsidies has an inverted U-shaped moderating effect.That is,when the level of rent-seeking is low,rent-seeking behavior has a positive moderating effect,it can improve the innovation subsidy performance of enterprises,but when the rent-seeking level is high,rent-seeking behavior has a negative moderating effect.Fourth,political connections can improve the effect of innovation subsidies by alleviating corporate financing constraints and reducing the degree of information asymmetry,while rent-seeking behavior can inhibit the incentive effect of innovation subsidies by inhibiting the innovation vitality of enterprises.Finally,based on the research conclusions obtained in the previous article,this article confirms that innovation subsidies have a positive incentive effect on enterprise innovation,and based on the main research conclusions,transmission mechanism,and heterogeneity analysis results,we puts forward four suggestions about how to better play the role of innovation subsidies: improving innovation subsidy standards,adhering to moderate subsidies,strengthening the construction of the market environment,and treating the relationship between government and enterprise reasonably.Combined with the research content contained in the full text,the innovation points of this article can be summarized into three aspects: First,this article uses manually filtered data to more fully examine the impact of innovation subsidies on the innovation performance of enterprises.It not only provides new empirical evidence for the incentive effect of innovation subsidies,but also provides research on the distribution system of innovation subsidies in China.A new research perspective.Second,a method to measure the innovation vitality of the enterprise is constructed from the perspective of enterprise R&D investment,and the level of insufficient innovation vitality of the enterprise is measured.The connotation of vitality has been expanded,and the impact of innovation subsidies on the lack of innovation vitality and its mechanism have been explored in detail.This provides support for innovation subsidies to alleviate the lack of innovation vitality of enterprises on both theoretical and empirical levels.Third,this article puts the government-enterprise relationship into the framework of innovation subsidies affecting enterprise innovation,and introduces two different analyses of the government-enterprise relationship on the basis of traditional analysis.The conclusion of the study is more in line with the reality of the socialist system with Chinese characteristics,which provides a direction for further research in the future.