Study On The Influence Of Government Subsidies And Market Competition Intensity On The Innovation Performance Of Enterprises

China's economic growth has been driven by a large amount of resources,but at the same time as China's economic take-off,domestic labor costs are rising,economic growth is slowing down,the previous economic growth model has not been applicable to the current China's national conditions.The innovation activity of enterprises is not only one of the important means for enterprises to improve market competitiveness,but also a breakthrough in changing the extensive economic growth mode in China.However,the research and development products of enterprises have the attributes of public goods,so the enterprise's willingness to innovate is low,and government subsidies can solve the spillover effect of public goods to a certain extent.For the market,the market as a pair of resources as an invisible hand often plays an important role in economic development together with government subsidies,so this paper has a certain theoretical and practical significance to study the relationship between government subsidy,market competition and enterprise innovation performance.Firstly,consulting the relevant literature to make a detailed understanding of the research topic of this paper,secondly,through combing and inducting the literature,put forward the theoretical basis and research hypothesis of this paper,and then,this paper selects the micro data of China's industrial enterprise database 1998-2007 as the research sample,establishes the two-way fixed effect model and the panel threshold regression model,and uses STATA14.0 to carry out regression analysis.Further,this paper also carried out a heterogeneous analysis of enterprises,with a more comprehensive research ideas to explore the impact of government subsidies and market competition on the innovative performance of enterprises.The study found that:(1)government subsidies and market competition can play a significant role in stimulating the innovation activities of enterprises.(2)Government subsidies and enterprise innovation performance have a threshold effect of market competition as the threshold.(3)The impact of government subsidies on the innovation performance of state-owned enterprises,private enterprises and foreign-funded and Hong Kong,Macao and Taiwan enterprises has a threshold effect,of which the subsidy effect of private enterprises is the best.(4)The empirical test of the non-linear effect of government subsidies on the innovation performance of enterprises in the east and enterprises in the Midwest,of which the subsidies of eastern enterprises are the best.(5)Finally,from the perspective of sub-industry,the non-linear effect of government subsidies on the innovation performance of high-end manufacturing enterprises and traditional manufacturing enterprises is tested.Based on this,this paper puts forward the policy proposals of establishing a dual incentive mechanism,selecting reasonable subsidy target,and establishing the government subsidy information disclosure system.