Tax Policy To Encourage Independent Innovation Of Enterprises

With "CPC Central Committee for 'the 11^th Five-Year Plan' proposal" introduced, "Improving the ability of independent innovation" has been elevated to the height of the national economic development strategy. "The 11th Five-Year Plan" proposes building an innovation-oriented country, building an innovative system, insisting market-oriented, enterprises as the main body, to enhance our capability for independent innovation as the key link, greatly improving primitive innovative ability, Integrated innovation and the introduction of re-absorbing ability to innovate, to create a group with their own intellectual property rights and name brands and a strong international competitiveness of enterprises. Early in 2006, General Secretary Hu Jintao's speech at the National Conference on Science and Technology which should further enhance our capability of independent innovation as a strategic task. And mobilizing the whole party and the whole society to adhere to independent innovation with Chinese characteristics and strive to build an innovation-oriented country. A depth study on how to enhance China's independent innovation capability, has become a major national prosperity and national rejuvenation.To build an innovation-oriented country, the most important thing is to continually improve the capability of independent innovation and motivation, enterprises are self-innovation, enterprises can improve the capability of independent innovation driven trades and industries to improve productivity, changes in the mode of economic growth; promoting regional economic development and raise the country's international competitiveness. Business innovation, we must have research and development capabilities and power, it needs not only internal incentive mechanism, macroeconomic environment also needs the support and guidance. The government's role in macroeconomic decisions of independent innovation in the enterprise can not be ignored, government regulation and taxation as an effective means of micro-economic entities in encouraging enterprises to the role of independent innovation have a good nature. This paper explores four major tax policy to encourage enterprises to innovate independently.The first part is the general theoretical analysis of innovative enterprises. Starting from the meaning of innovation, and further explained the meaning of independent innovation of enterprises, enterprises are the mainstay of independent innovation. clarify the current emphasis on the importance of independent innovation of enterprises. As described below, lay the foundation of the relevance of innovation and tax policy.The second part of the tax policy related to independent innovation and enterprise Analysis. From the characteristics of their own independent innovation leads to market failures require government support. Stresses that the tax system to encourage enterprises to increase the capability of independent innovation and vitality of the enterprises need tax themselves from the risk of independent innovation and independent innovation defuse the momentum to encourage enterprises to increase revenue elaborated on the effectiveness of independent innovation. After that is an analysis of our policies to encourage enterprises to provide a basis for independent innovation.The third part is an assessment of our country's tax policies to encourage enterprises to innovate independently. First technology into our tax policy at thisstage the scope of the types of incentives that encourage links, target groups. Inorder to further promote on the basis of independent innovation in China's taxpolicy, we point out the defects and deficiencies at this stage.Part IV, a choice of how to use the tax policies to encourage enterprises to innovate independently. In the analysis of tax policy on the basis of shortcomings and deficiencies, China targeted to encourage enterprises to innovate independently from the overall strategic design, put on a sound chain of independent innovation, a collaborating innovation mode among the industry, the university and research institute, and promote investment in a new tax policy recommendations.