Research On Government Support And Corporate R&D

Research and development activities are an important part of the company's strategy,as well as an important driving force to promote technological progress and achieve economic growth.However,due to the failure of the R&D market,some companies are not actively involved in R&D innovation activities.Based on the above analysis,The government's means of support mainly include government subsidies and tax incentives.However,both of them may bring resource effects and may also lead to rent-seeking behaviors that increase R&D costs.Therefore,Are these policies effective in practice? and Whether the resource effect brought by government subsidies and tax incentives and the cost of rent-seeking are different,in other words,who is more effective in practice,these problems are still not well answered.In view of this,based on A-share listed companies from 2011 to 2017,this paper explores the effect and influence mechanism of government-supported on r&d input and output(including r&d efficiency)of enterprises.The findings are as follows :(1)government subsidies and tax incentives will increase the r&d input and output,and based on the resource effect and rent-seeking cost brought by the policy,it is found that the government subsidy is greater than the tax incentives to promote R&D activities.(2)The impact of government subsidies and tax incentives on R&D activities is particularly prominent in enterprises with fierce market competition and higher level of equity incentives.When the market competition and the degree of equity incentives are different,the promotion of government subsidies to R&D activities is still greater than the tax incentives.(3)Further mechanism tests found that government subsidies and tax incentives affect R&D activities by alleviating corporate financing constraints and increasing rent-seeking costs,but the resource effects are more prominent.Therefore,government subsidies and tax incentives promote R&D input and output.This paper has four contributions :(1)This paper explores the role of government support on enterprise r&d from the perspectives of the resource effect and rent-seeking cost brought by the government,reveals the influencing factors of enterprise r&d activities,and provides new explanations for understanding r&d activities;(2)Exploring the influence of government support policies on r&d activities from two dimensions of r&d input and r&d output(including r&d efficiency),further respond to the "incentive effect" and "extrusion effect" views;(3)On the basis of discussing the role of government support for enterprise R&D,study the mechanism of government support for R&D activities;(4)Based on the resource effect and rentseeking cost,Comparing the government subsidies and tax incentives to provide policy recommendations for how to improve R&D activities.