Research On The Impact Of Government Subsidies On Enterprise Innovation Ability Based On Panel Quantile Method

As an important part of innovation-driven development,enterprise innovation is the core power of stable development of national economy.However,due to the high risk of enterprise innovation activities,the high uncertainty of expected returns and the attribute of "quasi-public goods",the company is faced with such problems as private returns lower than social returns,project financing difficulties and so on,resulting in "market failure"of innovation.It has become a common practice for governments to correct market failures in innovation activities through government subsidies.However,with the increasing amount of subsidies,the effect of government subsidies has become a hot topic of academic research.Scholars at home and abroad have made theoretical and empirical studies on the impact of government subsidies on enterprises' innovation ability.Foreign related researches started earlier,and their theoretical analysis and research methods have great reference value.However,there is a big gap between the research background and China's situation,and the reference value of the research results is limited.Compared with foreign countries,relevant researches in China started relatively late,most of which are theoretical policy analysis and macro data research,with few researches at the micro level.Based on this situation,this paper carries out research.This paper first reviews the relevant literature on government subsidies and enterprises' innovation ability,and then summarizes the impact of government subsidies on enterprises' innovation ability in three aspects.In addition,the relevant connotations of government subsidies and enterprises' innovation ability are defined,and then relevant theories are sorted out.It is found that the main mechanisms of government subsidies' influence on enterprises' innovation ability are incentive effect mechanism,extrusion effect mechanism and substitution effect mechanism.Secondly,this paper analyzes the current situation of government subsidies and enterprise innovation capability in China.Through the analysis of the current situation of government subsidies,it can be found that China attaches great importance to the improvement of independent innovation ability,and has issued a number of policies in succession to promote the implementation of work and standardize the way of government subsidies.Through the research on the status quo of enterprises'innovation ability,it is found that the coverage rate of government subsidy for listed enterprises in China has reached about 95%,and the trend is still rising.With the increasing of subsidy,the number of patent application authorization of enterprises is also increasing.However,whether government subsidies can be fully utilized by enterprises in innovation activities,and how about their utilization efficiency;In the state-owned enterprises and high-tech enterprises facing industrial transformation,we need to further study the impact of government subsidies on the improvement of their innovation ability.In view of this,this paper selected the enterprise data of China's a-share listed companies from 2011 to 2017,and through the panel quantile model,studied the samples from the perspectives of government subsidy amount,state-owned enterprise attributes and high-tech enterprises,and made A more specific analysis of the relationship between government subsidies and enterprises' innovation ability.The empirical results show that government subsidies play an important role in improving the innovation ability of enterprises.There is a positive correlation between government subsidies and firms' ability to innovate.However,in terms of how to make efficient use of government subsidies and how to optimize the forms of subsidies reasonably,it is suggested to focus on small enterprises that are just starting to use government subsidies to promote higher efficiency.For large enterprises,especially state-owned enterprises,they should use special funds for special subsidies and concentrate the subsidy funds on the innovation output end as far as possible.However,the subsidy for high-tech enterprises should be concentrated on smaller enterprises for better effect.