Government Subsidies And Enterprise’s Innovation Input

At present,China’s economy has entered the new normal of economic growth.The transformation of economic growth from speed growth to quality growth requires enterprises to change their development mode and realize industrial upgrading.Innovation is the core force driving industrial upgrading and achieving sustainable and high-quality development.Enterprises need to continuously improve their ability to explore and innovate and increase investment in innovation.However,enterprise innovation input has higher risk and higher information asymmetry,faced with strong external financing constraints and internal financing constraints.In order to promote the initiative of enterprise innovation,the government grants subsidies to enterprises.Due to the natural political connection between the state-owned enterprises and the government,the government will favor the state-owned enterprises when subsidizing.There are differences between state-owned enterprises and private enterprises in scale and system logic,which makes state-owned enterprises less urgent than private enterprises to receive government subsidies.In view of the above problems,this paper sorts out and summarizes relevant literature on government subsidies,innovation input and dual innovation.In the existing literature and theory,on the basis of analyzing the influence of government subsidies to innovation investment,government allowance for exploratory innovation and development of heterogeneity and nature of property right of government subsidies and the role of the relation between innovation input and the function of the nature of the property of exploratory innovation investment,and puts forward the corresponding assumptions.To verify the hypothesis,this article uses the data of the listed high-tech firms’ from 2011 to 2017,among which the data of 2017 is collected by manual.Then divide the government subsidies into technological subsidies and non-technological subsidies.According to the theory of dual innovation,this article divide the innovation into exploratory innovation and exploitative innovation.After the division of subsidies and innovation,this article analyze the relationship between them.Through regression analysis and robustness test,the hypothesis of this paper is verified and the following conclusions are drawn: first,government subsidies can promote innovation input,and the effect of science and technology subsidies is better than that of non-science and technology subsidies.Compared with development innovation,government subsidy plays a stronger role in promoting the investment of exploration innovation.In addition,both science and technology subsidy and non-science and technology subsidy can significantly promote the enterprise’s exploration innovation,and the effect is better than that of development innovation input.Second,government subsidies in private enterprises can significantly promote innovation input and exploratory innovation input.In the further research,this paper finds that rent-seeking can restrain the promoting effect of government non-science and technology subsidies on innovation input.This inhibiting effect is not shown in exploratory innovation and developmental innovation.Government subsidies can significantly promote the number of invention patent applications,and the government science and technology subsidies have a stronger role in promoting the number of patent applications;compared with developmental innovation,exploratory innovation investment can significantly promote the number of invention patent applications.In view of the conclusion,this paper gives the following Suggestions: the government should identify the innovation strategic intention of enterprises and increase the subsidy for exploratory innovation;the government should give more support to the innovation of private enterprises,especially to the private enterprises with exploratory innovation.Intensify the crackdown on rent-seeking and reduce rent-seeking corruption;in order to achieve greater technological upgrading,enterprises need to focus on exploratory innovation and increase investment in it.