Research On R&D Deduction Intensity,R&D Intensity And Innovation Performance

With the development of economic globalization, the best way to seek survival and development of enterprises is to enhance the capability of independent innovation. In order to encourage independent innovation and development, countries all around the world have put up various policies, the most common and versatile one of which is tax incentive. In particular, additional deduction of R&D expenses before income tax is one of the most important policies. As one of the pillar industries, it is important to improve the innovative performance of high-tech industry as to achieve "innovative country" strategic objective. Therefore, how to use the additional deduction of R&D expenses policy to improve the innovation performance of high-tech industry is the focus of this study.This paper is divided into four chapters. First, the paper made a brief introduction of the high-tech industry, R&D input and innovation performance and other related concepts and then the paper point out the research gap through carding relevant research literatures, as most literatures emphasize on the relationship between tax incentive and R&D input, tax incentive and innovation performance, R&D input and innovation performance, less considered the relationship between tax incentive 、 R&D input and innovation performance. Second, elaborated the theory about additional deduction policy, research and development activities and innovation performance which lay the foundation for the empirical research, include market failure theory、tax incentive theory and R&D endogenous growth theory. Third, the paper take the year 2010-2014 high-tech industry as an example which include 158 samples, by using descriptive statistics analysis、Pearson correlation analysis and multiple regression analysis found:(1) additional deduction of R&D expenses policy can significantly improve innovation performance which measured by the sales of new products accounted for the main business income ratio;(2) additional deduction of R&D expenses policy can improve innovation performance only when the R&D intensity falls in down the preferred range;(3) in terms of high-tech industry innovation output, additional deduction of R&D expenses before income tax can be more effectively promote their innovative performance improvement than direct government funding;(4) new export performance can significantly promote the sales of new products accounted for the proportion of total sales revenue. Finally, the paper concluded by making use of the empirical study: different R&D intensity can change the relationship between the additional deduction and innovation performance. Accordingly the paper made the following recommendations:(1) The Government should gradually expand the proportion of additional deduction;(2) increase R&D input as optimize the industrial structure;(3) encourage enterprises to apply for patents actively and intensify propaganda of the patent strategy;(4) support efforts to increase foreign trade in order to promote industrial upgrading. In conclusion, this study aims to make the government improve the innovation performance of high-tech industries more efficient and more targeted in order to promote long-term sustainable development of the whole industry.