An Empirical Study Of The Impact Of Government Subsidies On Enterprise Innovation Investment

With the deepening of science and technology in the information age,strategic emerging industries have become the new and main battlefield for developed countries and the world’s major developing countries to seize opportunities.For China,it is especially important to cultivate strategic emerging industries under the strategic background.It is not only related to the prosperity of each individual enterprise,but also to the modernization of the entire country.Therefore,the Chinese government is vigorously promoting the development of strategic emerging industries throughout the market.As a widely used incentive method to encourage independent innovation,enhance market competitiveness,government subsidies account for a growing proportion of national R&D funds.However,under this positive development trend,the development of China’s strategic emerging industries does not seem as smooth as expected,and the status quo is not optimistic.Therefore,the issue of the effectiveness of government subsidies has been widely studied by scholars:Can government subsidies really encourage enterprises to invest more capital into R&D innovation?But so far no conclusions have been made.The discussion of government subsidies on the effectiveness of corporate innovation investment has far-reaching practical significance in the current era.This paper takes the listed companies of 244 strategic emerging industries in China.According to the government subsidies,R&D investment amount and related data from 2013 to 2017,the Logit model is constructed,and the propensity score matching method(PSM)is used for empirical research.After separating the possibility that the government subsidies have different tendencies for enterprises of different scales,we will effectively explore the incentive effect of government subsidies.The innovation of this paper lies in the government’s direct subsidies to enterprises as actual government subsidies,and the interference of indirect subsidies is abandoned,which is more reasonable for strategic emerging industries.The empirical results show that government subsidies tend to distribute subsidies to state-owned enterprises with large scale,high return on assets,large proportion of R&D personnel,and high operating income;the intense effect of government subsidies on R&D investment is not significant,that is,It is said that the effect of innovation incentives for government subsidies is still relatively weak,and it has not really played a role in promoting R&D investment.In view of the above conclusions,three policy recommendations are proposed:strengthening the ex ante supervision of government subsidies,reducing the government’s propensity to subsidize the choice of enterprises,and forming a system to promote the transformation of government-funded science and technology projects,and establishing a synergy mechanism for scientific and technological innovation.