An Empirical Study Of The Impact Of Government’s Subsidies On Enterprise’s R&D Investment And Output

Innovation driven development is the core strategy of national development and the enterprise is also an important core of the national innovation driven development strategy. In China, financial science and technology funding has been the important way for the government to support enterprises to carry out R & D innovation. However, government science and technology funding has been a problem such as the use of low efficiency and the effect is not significant. Our country is trying to solve this problem by establishing a diversified science and technology funding system and will change the way of investment in enterprise technology innovation to the inclusive fiscal policy gradually. In recent years, Chinese enterprises began to pay more attention to intellectual property rights. The government is also aware of the need through the implementation of strict system of intellectual property protection for enterprise R & D innovation. Discussion on government how to use science and technology support and intellectual property protection in two kinds of means and support enterprise innovation in two-pronged approach will become a more and more important issue. Therefore, it has important theoretical and practical significance to study government science and technology funding, intellectual property protection, enterprise R & D innovation by linking them together.This paper first interprets the relevant laws, regulations and policies of the national science and technology support to carry out a more comprehensive description of the situation of China’s science and technology funding. Then we analyze the role of intellectual property protection in enterprise R & D activities by tracing the relevant literature on the protection of intellectual property rights and investigating on the development of intellectual property protection in China. Subsequently, Using the mixed cross section data of 6 years during the year of 2009 to 2014 to set the model construction and make an empirical analysis of the impact of science and technology funding on R & D investment and output in China. Finally, according to the present research and the empirical research results and combing with the reality of China’s innovation driven development and then we put forward the countermeasures and suggestions for the government to promote the development and innovation of enterprises from the four aspects of science and technology finance, financial market, intellectual property protection talent incentive.The main conclusions of this paper include the following three points. First, in the two kinds of government behavior to promote enterprise R & D and innovation, the promoting effect of science and technology funding for the promotion of enterprise R & D innovation is not obvious. Although with a historic increase in assistance, the actual effect is poor and he funding is still to be improved. The government does not have a large gap with the developed countries in legislation on protection of intellectual property rights but in law enforcement intensity of intellectual property protection we are still very backward. The relevant policy environment needs to be strengthened. Secondly, The three kinds of government science and technology funding methods have different effects on R & D investment and output. The three kinds of financing methods have incentive effects on R & D investment of enterprises. But on the impact of enterprise R & D output,only the high and new technology enterprise tax relief still has the significant effect of improving the enterprise R & D output. Direct government funding of R & D will even reduce output. Thirdly the protection of intellectual property rights only has a positive effect on the impact of the government’s science and technology subsidy on the enterprise’s patent output which shows that the scope of the protection of intellectual property rights in China is still small and the law enforcement is still a lot of room for improvement.There are two main innovations in this paper. First, the government’s science and technology funding is divided into three ways to study the effects of different funding methods on R & D investment and output. It provides a new theoretical perspective for the study of the influence of government science and technology subsidy on the research and development of enterprises. Its empirical analysis provides a theoretical basis for the formulation and implementation of government science and technology funding policy. Secondly we discuss the regulatory role of intellectual property protection factors in the relationship between government science and technology funding and enterprise R & D. In theory, this paper constructs the mathematical model of government funded science and technology, intellectual property protection, enterprise development among the three. In practice, it is helpful for the government to make better use of multiple fiscal and taxation policies and other means to encourage enterprises to carry out R & D and innovation.