Incentive Effect Of Government Subsidies On R&D Investment Of Software And It Service Enterprises

Software and IT service industry is an important industry related to national economic and social development,and its independent innovation has important strategic significance.In order to accelerate the development of the software and IT service industry and improve the capability of independent innovation,governments at all levels have actively implemented government subsidies and other supportive policies.At the same time,the development plan of this industry is made to give play to the decisive role of the market mechanism,strengthen the market principal position of enterprises.The main purpose of this paper is to find out the effect of government subsidy on the R&D investment of enterprises in software and IT service industry and the coordination between government subsidy and market mechanism.Firstly,this paper reviews existing research results and points out the shortcomings.The market failure theory,theory of government's role in market economy,signaling theory,institutional determinism,and rent-seeking theory are used to construct the theoretical basis.Then it summarizes the development and innovation status of the industry in China,and makes a comparative analysis of the policies and measures to stimulate innovation in the industry at home and abroad.Combined with theoretical foundation and the research results of existing scholars,this paper makes a theoretical analysis on the incentive effect of government subsidies on the R&D investment of software and IT service enterprises,the influence of marketization degree on the incentive effect,as well as the different impacts and their mechanism due to the types of government subsidies and enterprises,and puts forward research hypotheses.In the empirical test,this paper uses the data of 93 listed companies in software and IT service industry from 2012 to 2016,and conducts empirical test by static panel regression,dynamic panel regression(system-GMM),threshold regression and subsample regression.Firstly,the static panel data regression is used to study the overall impact of government subsidies on enterprise R&D investment,and the dynamic panel data model is to take the continuity of enterprise R&D investment into accounts as a robustness test.Secondly,in order to explore the influence of marketization degree on the incentive effect,the linear model regression with cross product term is firstly used to test the linear moderating effect.Then the threshold regression and sub-sample regression are used to test the nonlinear effect.Thirdly,government subsidies are divided into financial grants and tax incentives for sub-sample regression,to explore the difference between the incentive effect of types of government subsidies on R&D investment and the impact of marketization degree on the incentive effect of both.Finally,the sample enterprises are divided into state-owned samples and non-stateowned samples for sub-sample regression,to study the different incentive effects of government subsidies in consideration of the types of enterprise as well as the difference in the effect of subsidies in the case of different marketization degrees.The main conclusions of this paper are as follows: Firstly,on the whole,government subsidies can significantly stimulate the R&D investment of software and IT service enterprises.Secondly,marketization degree can positively affect the incentive effect of government subsidies on the whole,and its influence is a certain threshold effect.The incentive effect of government subsidies on R&D investment of enterprises in regions with high marketization degree is significantly higher than that in regions with low marketization degree.Thirdly,compared with tax incentives,financial grants subsidies have a more significant incentive effect.The marketization degree has a more significant positive impact on the incentive effect of tax incentives which is not significant in regions with low marketization degree.Fourthly,the incentive effect of government subsidies on state-owned enterprises in this industry is higher than that of non-state-owned enterprises.The improvement of marketization degree can enhance the incentive effect of non-state-owned enterprises' government subsidies on R&D investment,but reduce the incentive effect of government subsidies on state-owned enterprises to some extent.Finally,this paper puts forward policy suggestions.Firstly,the relationship between government and market should be handled well and the distribution modes of government subsidies should be optimized.Secondly,the market environment should be improved to enhance the effectiveness of government subsidies.Thirdly,relevant enterprises should target the market and make effective use of government subsidies.