Research On The Effects Of Finance And Taxation Incentives On Firm’s Technological Innovation Under The Moderation Of Product Market Competition

Innovative is the key to solve many structural problems by China’s economic development at this stage,and enterprises are the backbone to improve the national innovation ability.Because of the positive externality of innovation,the government has taken many measures to encourage enterprises to carry out innovation research and development.How to make effective fiscal and tax incentive policies to promote enterprises to carry out technological innovation activities,promote enterprises to increase R&D input,and promote enterprises to transform innovation input into innovation output,so as to realize the economic value of technological innovation,and then promote regional economic development and improve the comprehensive competitiveness is of great significance.Based on the theory of signal transmission and market failure,this paper discusses the influence mechanism of product market competition regulating government financial and tax incentives to promote technological innovation of enterprises,and puts forward four research hypotheses:(1)the non-linear relationship between government subsidies and innovation output,which shows that when the level of government subsidies is low,it is positively related to innovation output;when the level of government subsidies is high,it is negatively related to innovation output in an inverted U-shape Secondly,the relationship between tax preference and innovation output is non-linear,which shows that when the degree of tax preference is low,it is positively related to innovation output;when the degree of tax preference is high,it is negatively related to innovation output,which is an inverted U-shaped relationship;thirdly,product market competition will weaken the relationship between government subsidy and innovation output,when the degree of government subsidy innovation output is positive,product market competition will weaken this favorable relationship Positive correlation;when the government subsidy innovation output is negative correlation,the product market competition restrains the negative correlation;(4)the product market competition weakens the relationship between tax preference and innovation output,when the tax preference innovation output is positive correlation,the product market competition weakens the positive correlation;when the tax preference innovation output is negative correlation,the product Market competition restrains the negative correlation.This paper takes Ashare listed companies of strategic emerging industries as research samples,selects 2009-2016 as research window,uses patent applications as explanatory variables,government subsidies and tax preferences as explanatory variables,and product market competition as regulatory variables to construct linear and nonlinear models of government financial and tax incentives and enterprise innovation output respectively.Finally,FGLS regression method is used to test the research hypothesis.The results show that the government financial and tax incentives have a non-linear impact on the technology R&D activities of A-share listed companies in China’s strategic emerging industries,among which: when the government subsidies are low,the government subsidies can promote the R&D and innovation activities of enterprises,but when the government subsidies reach a high level,the government subsidies will inhibit the investment of enterprises in R&D activities,thus affecting innovation Produce.When the level of tax preference is low,the tax preference can promote the R&D innovation activities of enterprises,but when the level of tax preference reaches a high level and exceeds the critical value,the tax preference will inhibit the investment of enterprises in R&D activities,thus affecting the innovation output.Product market competition negatively regulates the relationship between government subsidies and technological innovation of enterprises.In the linear relationship between government subsidies and innovation output or in the first half of the inverted U-shaped curve,product market competition weakens this favorable positive correlation;in the second half of the inverted U-shaped curve,which is negatively correlated between government subsidies and innovation output,product market competition suppresses this non correlation The negative correlation of profit.Product market competition negatively regulates the relationship between tax preference and technological innovation of enterprises.In the linear relationship between tax preference and innovation output or in the first half of the inverted U-shaped curve,product market competition weakens this favorable positive correlation;in the second half of the inverted U-shaped curve between tax preference and innovation output,product market competition suppresses this negative correlation The negative correlation of profit.Finally,according to the results of literature analysis and empirical research,this paper provides some reference suggestions and research ideas for formulating reasonable and effective government fiscal and tax incentives to promote the innovation and R&D of Chinese enterprises.