Enterprise Innovation,Government Subsidy And Total Factor Productivity

In the past 40 years of reform and opening up,China's economic growth has achieved remarkable achievements.The development model of relying on expanding investment scale and demographic dividend to drive economic growth cannot be sustained for a long time.The development model of relying on expanding investment scale and demographic dividend to drive economic growth cannot be sustained for a long time.In order to realize the transformation and upgrading of manufacturing industry,all manufacturing enterprises must increase their efforts to carry out research and development and innovation,and improve the total factor productivity of enterprises(TFP).Naturally,it is necessary to give full play to the decisive role of the market in resource allocation and strengthen the main body status of enterprises,but it also requires the government to strengthen planning and guidance and improve relevant support policies.This paper hopes to empirically test the impact of enterprise innovation and government subsidies on TFP through sub-category,help enterprises understand the significance of innovation activities and their advantages and disadvantages in absorbing innovation results,and also give some suggestions on which enterprises should be inclined to government subsidy policies in the future.At present,the existing literature has made a deep analysis on the measurement and influencing factors of TFP at the macro and micro levels,and explored the impact ofcorporate innovation,government subsidies on TFP,and the transmission mechanism of government subsidies and TFP.Based on the existing literature,this paper analyzes the research problems by using economic growth theory,externality theory and signal transmission theory,and puts forward four hypotheses:(1)innovation input inhibits the promotion of TFP;(2)innovation output Promote the promotion of TFP;(3)government subsidies have a positive impact on the promotion of TFP;(4)innovation output can be used as a mediator to examine the impact of government subsidies on TFP.This paper collects data from more than 1,000 manufacturing companies listed on the A-share market in 2012-2017,and uses the LSDV method of the fixed-effects model to empirically analyze the panel data and test the hypothesis accordingly.This paper finds that the level of TFP of state-owned enterprises,main board enterprises and northern coastal enterprises is relatively high,but the growth rate is slow.For some time to come,the growth of TFP in the manufacturing industry will be driven by emerging,under-sized,and more technologically advanced companies.The company's innovation investment has achieved significant growth during the reporting period(in 2012-2017),and innovation investment has inhibited TFP in all categories in the short term,and this effect is more intense and more significant in non-state-owned enterprises,small and medium-sized enterprises,and coastal enterprises.On the other hand,although the company's innovation output has maintained steady growth in 2012-2017,non-state-owned enterprises,small and medium-sized enterprises,and GEM companies have grown faster,but their ability to absorb innovation output is weaker.The government subsidies have generally increased.Non-state-owned enterprises,GEM companies,and coastal enterprises have increased their government subsidies faster,and their ability to absorb government subsidies is stronger.,government subsidies per unit can increase the growth oftotal factor productivity in these companies.The main contributions of this paper are as follows:(1)Descriptive statistical analysis and regression analysis of panel data by sub-control nature,sub-listing sector,sub-economy,and sub-industry types,thus obtaining more comprehensive conclusions.(2)This paper adopts a more advanced ACF method on the measurement method of TFP,which improves the accuracy of the estimation results.(3)When studying the impact of enterprise innovation on TFP,this paper studies the innovation activities of enterprises into innovative investment and innovation output,which is helpful to deeply understand the innovation activities of enterprises.(4)This paper studies the impact of government subsidies on TFP with the innovation output of enterprises as a mediator,which is a supplement to relevant research.