Visible Hand And Corporate Innovation

After more than 40 years of rapid economic development,China has gradually transformed from "made in China" to "created in China".If we want to make a breakthrough in this stage,we must focus on the transformation and upgrading of the manufacturing industry.As the main body of innovation in the market economy,enterprises play an important role in promoting national technological innovation.At present,the main reason for the lack innovation momentum of enterprises is the existence of externality and market failure.Therefore,in order to optimize the efficiency of resource allocation and achieve effective competition and continuous innovation in the market,the government is necessary to make appropriate intervention in the technological innovation of enterprises with the help of tangible hands.However,in the decision-making process,the government may face a variety of policy tools to choose,how to balance different policy tools is particularly important.Among them,government subsidies and tax incentives are the two most commonly used policy tools.Scholars at home and abroad have measured the impact of government subsidies and tax incentives on technological innovation of enterprises through a variety of indicators,empirical research and theoretical analysis are more detailed.Although foreign researches in this field started early and the methods used to study this problem have certain reference value,the research background is different from China’s basic national conditions,so the reference value of the research results is very limited.In particular,there are few empirical studies on specific industries,so this paper focuses on specific industries for empirical analysis,and its conclusions are of theoretical value and practical significance.This paper took manufacturing enterprises from 2002 to 2007 as the object,incorporated government subsidies and tax incentives into the unified analysis framework,Thoroughly discusses the two policy tools influence on enterprise innovation level,and then judged the relationship between the government’s "tangible hand" and the level of enterprise innovation.The study finds that government subsidies will inhibit the level of technological innovation of enterprises,and the implementation of tax incentive policies will promote technological innovation of enterprises,but there is an optimal range of policy implementation,and there is heterogeneity in the acceptance of tax incentive policies by enterprises in different industries.The robustness of the above conclusions is proved by changing estimation methods,changing the calculation method of indicators and comparing industry segments.On this basis,the paper continues to explore the path of action between government subsidies and technological innovation level of enterprises by using the mediation effect model.The results show that rent seeking and asset redundancy are the key factors of government subsidy restraining technological innovation.