The Impact Of Innovation Policy On Innovation Behavior Of Small And Medium-sized Enterprises

In the era of "innovation-driven growth",the key for a country to achieve sustained and stable economic development is to improve its innovation capability.The small and medium-sized enterprises(henceforth,SMEs)occupy an important position in the national economy,which is the backbone of national technological innovation and the basic force to promote economic development,promote social stability.Under this background,the Chinese government actively implements the innovation policy to encourage SMEs to engage in R&D innovation through government subsidies and tax incentives.However,for seeking government support,some enterprises only pay attention to the quantity of innovation and neglect the quality of innovation.This is not only contrary to the original intention of the innovation policy,but also hinders the improvement of China's innovation strength.Based on this,this paper studies the impact of innovation policy on innovation behavior of SMEs from the perspective of policy evaluation to provide references for future innovation policy formulation,implementation,and adjustment.This paper firstly reviews the existing literature,clarifies the theoretical basis of the implementation of innovation policy and analyzes the transmission mechanism of the impact of innovation policy on the innovation behavior of SMEs.Next,this paper built the model based on the data of listed SMEs from 2010 to 2017 by using the PSM-DID method.The results showed that government subsidies can promote SMEs' innovation and stimulate their substantial innovation,while tax incentives have no obvious effect on SMEs' innovation.Furthermore,this paper uses the Fuzzy RD to explores the impact of innovation policy on science and technology small and medium-sized enterprises(henceforth,STSMEs),which have the most innovative development potential.The results of fuzzy regression discontinuity show that government subsidies,tax incentives and their interaction have a significant positive effect on the innovation of STSMEs.They could stimulate their substantial and strategic innovation.This paper also studies the effect of innovation policy based on regional differences and the results demonstrate that the government subsidies,tax incentives and the interaction between them all have a positive effect on the innovation of STSMEs in the eastern region.However,this is not true for non-eastern regions.Moreover,the incentive effect of the innovation policy on STSMEs in the eastern region is greater than that in the non-eastern region.