Analysis On The Policy Incentive Effect Of Smes’ Innovation

This year is the first year of China’s 13th Five-year Plan,Proposal of the CPC Central Committee on the development of "13th Five-year Plan" points out that China will take innovation as the first driving force for economic development,and continue to promote S&T innovation as the core of the comprehensive innovation work in the next five years.Undoubtedly,innovation has become a necessary way to achieve the strong growth of China’s economy.At present,China is being in the process of implementing the strategy of innovation-driven development and moving towards the ranks of the world’s scientific and technological power,the government frequently introduces a number of R&D policies to enhance the national independent innovation capability,and the key to achieve this goal is to cultivate enterprise’s innovation ability,especially the creativity of SMEs can not be ignored.Currently,the government R&D policies which are widely implemented to enhance the innovation main body status of the SMEs are government R&D subsidy and R&D tax incentive.In China,the SMEs are the enterprise groups who are full of innovation vitality,and are gradually becoming the main force to promote the pace of innovation driven.So its independent innovation ability has always been concerned by the government.The existing researches on SMEs are still scarce.Our systematic study on the effects of government R&D subsidy and R&D tax incentive on SMEs’ innovation not only enriches the literature on the effectiveness of government R&D policies,but also provides a reference for the government to develop and implement R&D policies and SMEs’innovation management practice.This paper pays attention to government R&D subsidy and R&D tax incentive.Taking 2007-2014 Shenzhen Stock Exchange SME board 630 listed companies 3147 valid observations as samples,an empirical analysis is made using System GMM by constructing a non-balanced dynamic panel model.Firstly,this study investigates the effects of single R&D policy on SMEs’ innovation.Then,we explore the impact of firm characteristics on the relationship between above two,such as ownership and industry.On this basis,we analyze the differences between the two R&D policy instruments,and think that the enterprises who enjoy R&D tax incentive will be more willing to invest in R&D and make more effective use of government R&D subsidy funds.For this,we empirically test the moderating effects of R&D tax incentive on government R&D subsidy.The results suggest that government R&D subsidy and R&D tax incentive play a significant role,namely,the enterprises who enjoy R&D subsidy or tax incentive have a significant advantage in R&D capital investment,high-level talents introduction and overall innovation outputs,this conclusion is also applicable for non-state-owned enterprises and enterprises belonging to the innovation industry;R&D tax incentive has a positive moderating effects on the policy impact of government R&D subsidy,specifically,government R&D subsidy aimed at enjoying tax incentive enterprises can encourage them to increase R&D investment and absorb S&T talents with sharp innovative thinking further,and then improve the performance of the invention innovation.In other words,government R&D subsidy will play a more significant role based on the enterprises with better innovation environment.