Government R&D Subsidies,Internal Control Quality And Enterprise Technological Innovation

Innovation is an important engine for a country or region to achieve sustainable and healthy development.At present,China is in a critical period of innovation driven development strategy reform,and the innovation ability of enterprises is very important in promoting the national economic development.The 13 th five year plan puts forward that scientific and technological innovation should be placed at the core of the overall development of the country,and the report of the 19 th National Congress of the Communist Party of China also emphasizes the need to accelerate the construction of an innovative country.In addition,the report on the work of the government in 2020 once again puts forward the need to improve the support capacity of scientific and technological innovation,guide enterprises to increase investment in research and development,and further promote mass entrepreneurship and innovation.It can be seen that China has a high level of technological innovation attention.However,in the process of innovation,Chinese enterprises are generally faced with financing constraints and lack of innovation power.Therefore,in this process,the government can not do without the support of the government,the government through the implementation of relevant incentive measures to guide enterprises to release innovation vitality and improve the core competitiveness,of which,the government gives direct financial support such as R&D subsidies is particularly important.In this context,this paper takes A-share listed companies from 2012 to 2018 as the research sample to respectively study the relationship between Government R&D subsidy,internal control quality and technological innovation of enterprises,and to explore the regulatory role of internalcontrol quality in the impact of Government R&D subsidies on enterprise technology innovation.First of all,this paper reviews the domestic and foreign literature on government R&D subsidy,internal control quality and technological innovation of enterprises.By combing different views,it understands and summarizes the existing research conclusions and the direction of research among the three.On this basis,through theoretical analysis,it puts forward the research hypothesis of this paper.Secondly,this paper takes the number of patent applications as an alternative variable of enterprise technological innovation,and selects the subsidies related to enterprise R&D as government R&D subsidies to study the relationship between Government R&D subsidies,internal control quality and enterprise technological innovation.Furthermore,to further explore the effect of Government R&D subsidies of enterprises with different innovation value under the role of internal control,the paper divides the technological innovation of enterprises into substantive innovation and catering innovation,and conducts empirical test.In addition,in order to explore whether different property rights and industry characteristics will affect the relationship between the three,we study the grouping of state-owned enterprises and non-state-owned enterprises,state-owned enterprises and local state-owned enterprises,and high-tech enterprises and non-high-tech enterprises.The empirical results show that:(1)the relationship between Government R&D subsidy and enterprise technological innovation is inverted U-shaped,and the inverted U-shaped relationship between Government R&D subsidy and enterprise substantive innovation output is more significant than that of enterprise catering innovation output.(2)The quality of internal control has a significant positive role in promoting technological innovation.(3)The quality of internal control has a significant positive regulatory effect on the relationship between Government R&D subsidies and enterprise technological innovation,and compared with substantive innovation,the positive regulatory effect is more significant under the enterprise catering innovation.(4)Compared with non-state-owned enterprises,the positive regulatory effect of internal control quality is more significant in state-owned enterprises.In addition,the regulatory effect of internal control quality of central enterprises is more significant than that of local state-owned enterprises.(5)From theperspective of industry,compared with non high-tech enterprises,it plays a weaker role in high-tech enterprises.Finally,according to the conclusion of the study,this paper puts forward the following policy suggestions from the perspective of enterprises and governments:enterprises improve the level of internal control management,enhance the awareness of independent innovation;governments improve the approval mechanism of R&D subsidies,reasonably select subsidy objects,and improve the supervision of the use of subsidy funds.In order to improve the rationality of R&D subsidy object selection,enterprises can improve the internal control system,improve the core competitiveness of enterprises,and finally achieve the policy goal of Government R&D subsidy,and promote the sustainable and healthy development of national macro-economy.