Research On The Relationship Between Government Subsidies, Financing Structure And Enterprise R&D Investment

Scientific and technological innovation is an important force supporting the economic development and social progress of all countries in the era of knowledge economy.High-tech enterprises are the subject and pioneer of R&D and innovation activities and the endogenous driving force to maintain the sustainable development of national economy.However,enterprises still face a series of problems such as narrow financing channels,high costs and restrictions in the process of R&D investment.For this,the country gives support to enterprises’ scientific research activities through a variety of means,which also leads to have heated discussions among scholars on the fairness,efficiency and effectiveness of government subsidies.With the deepening of research,domestic and foreign scholars try to analyze the influence of subsidy behavior from the perspective of enterprise internal governance mechanism,but no consistent conclusion has been reached so far.Therefore,this paper builds linear regression model and threshold regression model on the basis of literature research and theoretical analysis.Using the balance panel data of gem listed companies from 2013 to 2017,this paper analyzes the important role of government subsidies and internal financing structure in the investment process of R&D projects of technology-based enterprises.The research results show that: first,government subsidies can improve the level of enterprise R&D funds and human investment to a certain extent,and the promotion effect of R&D funds is significantly better than R&D human investment;Second,for small and medium-sized technology companies,they tend to use equity financing to invest in research and development projects,that is,the proportion of equity financing is positively correlated with the R&D funds and the level of human investment.However,different from government subsidies,equity financing plays a better role in promoting human investment in research and development than R&D funds;Third,the influence of government subsidies will show a double threshold effect with the change of enterprise financing structure.Only when the enterprise financing structure is kept within a certain reasonable range,can government subsidies give full play to the incentive effect.Finally,based on the research results and the current situation of China’s economic and scientific research and technology development,this paper puts forward some suggestions from the two aspects of the government and business operators.It is expected that the government will pay more attention to the efficiency of resource allocation,which assist enterprises to adjust and optimize the financing structure,and further release the scientific research potential of small and medium-sized scientific and technological enterprises.