Government Subsidies,External Investors And Corporate Innovation

Innovative ability is an important advantage of enterprise competition and the key to the prosperity of the country.General Secretary XiJinping pointed out in the report of the 19 th National Congress: "Innovation is the first driving force for development and a strategic support for building a modern economic system." In order to cultivate the innovative capabilities of enterprises,governments at all levels from the central to local governments are actively encouraging individuals.And enterprises to start their own business,innovation,and strive to be the leader in the field of innovation.The National Finance Bureau has issued a series of tax incentives and subsidies to encourage enterprises to increase their enthusiasm for innovation,such as: fiscal interest subsidies,tax rebates,direct reductions and exemptions,exemptions,one-time government subsidies beforehand,and government subsidies afterwards.The Ministry of Education has continuously supported four “Internet+”competitions to fully stimulate the ability of college students to create new things.The Ministry of Science and Technology has also provided a high-quality innovation platform for mass innovation,the creation space,which aims to minimize the troubles caused by R&D expenses in innovative activities.In order to implement the national strategy of innovation-driven development in various regions,various regions have also implemented some incentive measures: providing innovative enterprises with three-year rent-free,giving high-tech enterprises a maximum of 3 million yuan,and making outstanding contributions to science and technology.Award medals,etc.As the core force of market economy competition in the new era,innovation has become the primary choice for strategic economic decision-making.Due to the high risk of innovative investment projects,huge investment during the period,and long time spent,most companies often face difficulties in innovation investment,technology spillovers and financing constraints when investing in innovative projects.Especially for private enterprises,most of them are small in scale,lack of funds,and they are faced with "credit discrimination" and serious financing constraints.It is difficult to occupy a place in market competition.Choosing innovative investment willundoubtedly increase its own dilemma,and it will not be recognized by external investors.It will bear more pressure than other companies and face more serious financing constraints.However,private enterprises account for more than half of the number of enterprises in China.Under the background of innovation as the driving force for development,in order to improve the innovation level and ability of the whole enterprise,it is necessary to focus on improving the innovation capability of private enterprises and solve private enterprises.The dilemmas faced in the process of innovation.Government subsidies are an important way for the government to respond to national calls and encourage enterprises to actively invest in innovation,which has an important impact on the innovation activities of enterprises.Based on signal transmission theory,financing constraint theory and innovation theory,this paper studies how government subsidies affect the innovation activities of private enterprises;what attitudes do external investors have towards the innovation activities of private enterprises;when enterprises are subsidized by the government,external investment Whether the “discrimination” of enterprises will be moderated;whether government subsidies have an optimal subsidy range,so that government subsidies have the best incentive effect on innovation in the sub-scope.This paper firstly combs and summarizes relevant researches on enterprise innovation,government subsidies and enterprise innovation,external investors and enterprise innovation research,and private enterprise innovation.Then it analyzes related theories and proposes relevant The research hypothesis is based on the sample of the private enterprises in Shenzhen and Shanghai in 2013-2017,using the software stata12.0 to conduct regression analysis on the samples according to the model established according to the hypothesis.According to the regression results,the paper draws the following conclusions:(1)government subsidies can positively incentivize private enterprises to increase innovation investment;(2)external investors are not optimistic about innovative investment of private enterprises;(3)entry of government subsidies to the outside Investors have passed on favorable information,which has eased the financing constraints of the company in the process of innovation and gained more financing.(4)There is an optimal subsidy interval in private enterprises,and the subsidy efficiency is the highest in this interval.In order to have a deeper understanding of the signal transmission role of government subsidies,this paper conducts a sub-industry study on government subsidies,external investors and enterprise innovation,and concludes that government signals in different types of industries show different forms.Finally,the paper conducts a robustness test by substituting variables and laging back on government subsidies to ensure the reliability and accuracy of the results.