Research On The Impact Of Government Subsidies On The Development Of The Medical Device Industry

The relationship between the government and the market is a long-standing topic of discussion in the practical and theoretical circles.Enterprises are the main participants in the market.The relationship between the government and enterprises is the focus of many scholars in recent years.From the perspective of practice,government policies are always in the moment.Both penetrate into the daily business activities of the enterprise,and the macro environment in which the enterprise is located needs the coordination and regulation of the government.The subsidies provided by the government to enterprises will promote industry R&D innovation,market development,and product upgrades.This paper uses 62 data from listed companies in the medical device industry as a sample for empirical analysis.And analyzes the macro environment and the impact of government subsidies on the development of SMEs in the industry,and summarizes the impact of the government subsidy to the entire medical device industry.China's medical device market is developing rapidly.With the rapid development of China's economy,the continuous upgrading of consumption structure and the continuous prosperity of medical services,China's medical industry will continue to maintain a rapid growth trend in the future,accounting for the proportion in the international medical market.Status will continue to improve.The Chinese government is continuously promoting the localization of medical devices,and the macro environment is increasingly conducive to the development of the industry.Market share continues to increase,import and export structure continues to optimize Government subsidies promote the growth of corporate performance by influencing the company's R&D investment,number of employees and corporate brand building.The impact mechanism is mainly the incentive effect and the crowding out effect.Government subsidies promote the performance of listed companies in the medical device industry.The current government subsidies have a significant impact on the performance of the current period.The main reason is that government subsidies reduce the current R&D expenditures,personnel recruitment training expenses and other daily operating expenses.The current corporate performance has been increased;the current government subsidies will also promote the performance of the latter period of the enterprise,the medical device industry has a long development cycle,and the government's R&D subsidies for enterprises play a slow role,leading to the lag of the government subsidy effect.The role of government subsidies for non-listed companies in the medical device industry is mainly to help enterprises tide over the difficulties of funding,increase the enthusiasm of SMEs for innovation and research,and help companies establish a good brand image.Due to the limitations of their own development,small and medium-sized enterprises have a low sense of innovation and it is difficult to obtain a large amount of research and development subsidies from the government.Therefore,this paper selects a case study of the unicorn company Shanghai Lianying Medical Co.,Ltd.as a non-listed company.Based on the theory,the status quo and the empirical research,this paper concludes that the government's subsidies to listed companies are large,the positive effects of government subsidies on the performance of current enteriprises are more significant,and the distribution of government subsidies in the medical device industry is uneven.In order to promote the localization of medical device products and accelerate the development of the medical device industry,the government should encourage R&D and innovation in the whole industry,promote the integration of production,education and research,increase support for innovative enterprises,and we should strictly monitor the issuance and use of government grants.