Research On The Correlation Between Government Subsidies,R&D Investment And Enterprise Performance

Since the beginning of the 21 st century,the degree of economic integration has become higher and higher.In the tide of the market economy,every enterprise is facing tremendous pressure from competition.The competition between enterprises is becoming more and more fierce.The success or failure depends to a large extent on the advancement of technology.Technological innovation is crucial to the production of enterprises.Only when a company can create its core competitiveness through innovation can it be Better adapt to the market and meet the needs of the market,so as to go ahead of the trend of the times and win the competition in the fierce market.Comrade Jiang Zemin once said that "innovation is the soul of a nation's progress and the inexhaustible motive force for the country's prosperity and development." Only by continuously strengthening innovation and research and development can any enterprise be able to become bigger and stronger and continue to develop.However,R&D innovation activities are often highly risky.Enterprises need to invest a lot of manpower,material resources and financial resources in the R&D process,which leads decision makers to be more cautious in investing in R&D innovation activities.In addition,R&D innovation activities are characterized by high uncertainty.There are great uncertainties in the early stage of R&D and R&D.First,we are not sure whether the investment is effective and whether we can develop products that meet market needs.Second,R&D innovations have positive externalities that make research and development easy to steal.These have all inhibited the enthusiasm of enterprises for R&D innovation to a certain extent.The GEM,also known as the second board market,is a type of securities market that is different from the main board market.It is a securities trading market that provides financing and growth space for entrepreneurial companies that are temporarily unable to list on the Main Board.Most of the companies on the board are high-tech companies.They have strong research and development capabilities and are more promising than traditional manufacturing.However,the risks are also greater and the technology is changing rapidly.The government encourages R&D and innovation to promote long-term and stable development of the company.Government subsidies are often used as the most direct means of government support for businesses.But in reality,whether government subsidies have played their due role is still controversial.Therefore,it is of great practical significance to study the impact of government subsidies and R&D investment on firm performance and to analyze its causes.Based on the data of listed companies in China's Growth Enterprise Market from 2013 to 2017,this paper looks at “how government subsidies affect corporate performance” from two different perspectives: government subsidies and R&D investment.The theoretical analysis and empirical research on the three issues of “what kind of impact” and “whether R&D investment will play a mediating role in the two factors of government subsidies and corporate performance”,the results of this article indicate:(1)government subsidies It can significantly improve the performance of the GEM high-tech enterprises,and there is a lag period.(2)The current government subsidies of the GEM high-tech enterprises and the government subsidies of the first phase will have different effects on the performance of the enterprises.The former will have a positive impact on the performance of the company through R&D investment,while the latter will invest through R&D.There is a reverse effect,which means that the former has a certain incentive effect,while the latter produces an extrusion effect.(3)R&D investment can significantly improve the performance of GEM high-tech enterprises without lag.According to the research conclusions of this article,we propose two different opinions from the following two aspects: From the perspective of enterprises,if enterprises want long-term stable development,they still need to have their core competitiveness,and core competitiveness.The creation is inseparable from innovation and research and development.Therefore,enterprises should improve their innovation awareness and innovation ability through the improvement of corresponding management mechanisms to ensure the normal development of R&D.From the perspective of the government,it is necessary to improve and adjust the current subsidy policy.When granting subsidies,the purpose of the payment should be clarified.Strengthening the intellectual property system will play a certain role in alleviating the phenomenon of randomly stealing others' research and development results.