Government Subsidies,Market Competition And Enterprise Innovation

In the contemporary era of rapid economic growth,innovation has become the focus of attention of all countries in the world,providing an inexhaustible motive force for both the national economy and the long-term development of enterprises.In the report of the 19 th National Congress,speeding up the construction of innovative countries was once again put on the agenda.To build an innovative country is to regard technological innovation as the core driving force for economic and social development.Technological creation and innovation will upgrade the country's industrial structure and increase its wealth.Innovative development is one of the most effective means for enterprises to keep pace with The Times to enhance their viability to renew their core competitiveness and maintain their sustainable growth.One of the first characteristic features of building an innovative country is high innovation investment.From the perspective of enterprises,technological innovation is one of the conditions for enterprises to survive and develop.However,the large amount of capital investment demand for innovation activities,the low efficiency of early investment,the high risk of R&D failure,and the innovative resources of high-quality R&D personnel.The requirements have made most companies discouraged.In addition,the externalities may further weaken the company's willingness to innovate.At this time,relying solely on the market's own allocation of resources will certainly delay the pace of becoming an innovative country.From the government's point of view,one of the most important functions of the government as one of the main players in the national economy is to carry out macroeconomic regulation and control to reduce economic losses under market failure.Through financial subsidies and policy guidance for corporate innovation activities,the government can enhance corporate confidence to enhance its willingness to innovate.Therefore,government intervention is necessary for the development of enterprise innovation activities.The specific research and analysis of the relationship between government intervention and enterprise innovation activities can provide a practical direction for the realization of the strategic goals of innovation.This paper firstly summarizes and reviews the relevant literatures from three aspects: the influencing factors and effect research of government intervention,the research on the influencing factors of corporate innovation behavior,and the effect of government intervention on corporate innovation behavior.Secondly,based on the externality,market failure,principal-agent theory and other theories,how the government influences the R&D investment of the enterprise through the intervention of the enterprise,and then affects the innovation performance of the enterprise.Then,based on the data of 2013-2017 of China's manufacturing listed companies,the empirical analysis using stata15 shows that:(1)Government subsidies have a significant incentive effect on corporate innovation input and output;(2)Government subsidies have a stronger incentive effect on innovation input of non-state-owned enterprises,and a stronger incentive effect on innovation output of state-owned enterprises;(3)The degree of market competition has an incentive effect on the input of enterprise innovation activities,and has a suppressive effect on the output of innovation result;(4)The degree of market competition has a significant positive regulation effect in the positive correlation between government subsidies and innovation input of enterprises,while the positive regulation effect in the positive correlation between government subsidies and enterprise innovation output is not obvious;(5)The concentration of equity and The scale of enterprises has a negative impact on their investment in innovation to a certain extent.Finally,based on the above theoretical and empirical analysis results,this paper proposes policy recommendations for further improving government functions,optimizing government resource allocation,and improving corporate innovation performance.From the perspective of government subsidies,this paper considers the two aspects of innovation input and innovation output efficiency,and explores the effects of government subsidies on corporate innovation activities.At the same time,combining the regulatory effects of different levels of market competition,it provides some empirical evidence for the government's precise measures for innovative activities and for enterprises to enhance their innovation capabilities.