Research On The Impact Of Government's S&T Incentive Policy On Enterprise's R&D Input

The improvement of Technology is the engine of economics growth and the power of economy development. As the source of the technical progress, Research and Development (R&D) is also important in business, especially for china, which is in a critical period of social transition now. The key to solve all aspects of problems lies in the improvement of country's innovation capability and upgrading the level of technology. However, market power can not fully encourage enterprises to increase R&D input all by itself because of the market failure in R&D field, such as the attribute of public goods,etc. Government need to intervene the R&D field to solve the market failure and encourage enterprises to increase R&D investment. So under the new situation, it is very necessary to make a detailed research on the mechanism and the incentive effectiveness of the impact of Government's S&T incentive policy on enterprises' R&D input.The introduction part of the thesis expounded the research background and the significance of the topic, then unscrambled the foreign and domestic literature from the macro and micro levels, and made a definition to the conceptions concerned to the paper. The theoretical research part firstly discussed the necessity for the government to intervene the R&D field, and expounded the five characteristics of R&D products: public goods attributes; spillover effect; uncertainties; asymmetric information; path dependence and lock-in, then analyzed the forepart of grossman & helpman's quality ladder model and got enterprises' balanced R&D density equation. We introduced the government policy variables into the equation, and based on that we successfully analyzed the mechanism of the impact of government S&T incentive polices on enterprises' R&D input, and concluded it into four effects: stimulating effect; leverage effects; the spillover effect; the crowding-out effect. The empirical research part made an experimental analysis to the four effects based on the panel data of large-middle enterprises in China. Using random effects model as the method, the empirical research analyzed each S&T incentive policy's incentive effect, the interaction between every two polices and the effect of policy stability. The empirical research got three main conclusion: the impact of S&T incentive policy on the enterprises' R&D input is mainly positive; The impact of one policy on another apparently existed; the stability of a policy would affect its incentive effect. The final part proposed several suggestions to government's S&T incentive policy making, based on the conclusion of the thesis.