Research Of Effect Of Revenue Policies On Self-innovation Of China's Equipment Industry

Equipment industry represents the level of S&T progress and degree of a society. It provides techno-equip to every department of national economic and main project of a country. There are very important strategic significances in vindicating national dominion, promoting upgrade of industry and developing national economic. At present, the equipment industry lacks of self-innovation and techno-core on autonomous Intellectual Property, and it is in face of striking on new technology and Intellectual Property. So we must apply ourselves to the research of development of equipment industry in China.In this paper, I study the relationship between R&D outlay and value-added tax together with income tax by a demonstration analysis. On the other way, I study the relationship between increase rates on R&D outlay and on value-added tax together with income tax. Then I find how value-added tax and income tax impact equipment industry by impacting R&D outlays. On the base of the analysis above, then some suggestions are proposed in the paper for accelerating self-innovation of China's equipment industry.There are many factors impacting self-innovation in equipment industry, but revenue by way of an adjustable factor has an important impact on it. This paper validates that there is a direct negative relativity between R&D outlay and value added tax together with income tax. In addition, the author analyzes impacts on preferential duties policies to China's equipment industry.