Research On The Impact Of Government R&D Subsidieon Enterprise Innovation Investment

In the context of China's economic development entering the "new normal".Innovation has become the driving force for China's economic development.In recent years,the state has attached great importance to the improvement of corporate innovation capabilities and implemented a number of R&D subsidies.It aims to stimulate the innovation potential of Chinese enterprises and enhance the international competitiveness of Chinese enterprises.However,there are many controversies about the effectiveness and impact mechanism of government R&D subsidies.Therefore,this paper aims to use the economic principles and empirical analysis methods to study the impact of government R&D subsidies on the innovation investment of enterprises in different situations in China.And,to analyze the impact mechanism of government R&D subsidies on the incentive effect or crowding out effect of enterprise innovation investment.Moreover,it provides a theoretical basis for government R&D subsidies and enhances the level of innovation investment of Chinese enterprises.First of all,this paper introduces the theoretical basis of government subsidies for enterprise innovation,and analyzes the three effects of government R&D subsidies on enterprise innovation investment.Secondly,based on the theory of economic growth,Romer's endogenous growth model and externality theory,this paper analyzes the necessity of government R&D subsidies and the impact of government R&D subsidies on enterprises and society.Thirdly,based on the analysis of economic theory,this paper uses the data of China's listed manufacturing enterprises from 2015 to 2017 to construct a nonlinear regression model for empirical analysis.This paper discusses group-wide data,enterprise data of different ownership characteristics,and enterprise data in different regions.Then,analyze the causes of the regression results of each group.Finally,this paper deeply studies the reasons why government R&D subsidies have incentives or crowding out effects for enterprises,and provides reasonable suggestions for the government to “reasonably formulate policies”.Through research,this paper draws the following conclusions: First of all,from the analysis of economic growth theory and externality theory,it is necessary for the government to provide R&D subsidies for enterprises,and government R&D subsidies can effectively solve the problem of market failure.However,the effect of government R&D subsidies is related to the situation of subsidized companies.Secondly,for all research enterprises,the current government R&D subsidies will have an incentive effect on enterprise innovation investment.From the perspective of different ownership characteristics,the current government R&D subsidies will have an incentive effect on private enterprises,and generate incentives and squeeze out double effects on state-owned enterprises.From the perspective of the region where the enterprise is located,the current government R&D subsidies have an incentive effect on the developed regions in the east,and have a double effect on the western region.Third,the continuity of the previous government R&D subsidies and government R&D subsidies will also have an impact on corporate innovation investment,and this effect will have different effects depending on the company's different situations.Finally,this paper attributes the government's impact on corporate innovation subsidies to the “expected profits” of enterprises.