Study On Impact Of Preferential Tax Polices On Enterprise R&D Investment

General Secretary Xi Jinping put it forward in his report to the 19th National Congress of the CPC,innovation is the driving force leading the development of a strategy to support the construction of a modern economic system..Enterprises are one of the important forces of the innovation system.However,enterprises’ R&D activities have positive externalities and uncertainties,which has led to market failures.To solve this problem requires government support and incentives.As one of the important tools of government macro-control,tax preferential policies play an important role in motivating enterprises to carry out R&D activities.Therefore,exploring the incentive effect of the implementation of tax incentives in China on corporate R&D activities is of great significance for optimizing China’s tax incentives,promoting the transformation of China’s economic structure,and building an innovative country.Based on the background of China’s implementation of the innovation-driven development strategy,this paper studies the impact of preferential tax policies on corporate R&D activities.Firstly,the realistic background and significance of the topic are elaborated,and the literature review of related research at home and abroad is combed from four aspects,which clarifies the research methods,existing innovations and deficiencies of this paper.Then it analyzes the theoretical basis of tax incentives affecting corporate R&D activities.From the two aspects of the positive externalities of corporate R&D activities and the shortcomings of corporate R&D activities,it expounds the logical starting point of government incentives for corporate R&D activities.The theoretical basis of tax incentives to encourage R&D activities is elaborated from two perspectives:motivating enterprises to increase R&D income expectations and mitigating corporate R&D activities risks.Based on this,the current situation of China’s R&D activities and preferential tax policies,as well as the existing problems summarized based on the existing tax preferential policies,are introduced from the three aspects of the current status of China’s R&D activities:funding,manpower,and output.The current major preferential tax policies for R&D in China and their four shortcomings.Then the empirical analysis was carried out based on the 2012-2016 data of listed manufacturing companies.The empirical analysis was divided into two parts.Firstly,three hypotheses were put forward based on the combed literature.The panel data fixed effect model and propensity score matching method were used to verify and verify the hypotheses.Then,the parameter processing effect model was used to pass and passed the robustness test.Analysis conclusions of this paper are as follows::Tax incentives have a certain positive effect on stimulating corporate R&D investment,but there are different degrees of incentive effects on corporate R&D investment.From the perspective of industry,tax preferential policies have played a significant role in encouraging capital-intensive industries,but not significant for labor-intensive and technology-intensive industries.From the perspective of property rights,tax preferential policies have played a role in R&D expenditure of non-state-owned enterprises.This has stimulated non-state-owned enterprises to significantly increase R&D expenditures,but has not provided incentives for state-owned enterprises.Finally,according to the four shortcomings and empirical results of China’s R&D preferential tax policies summarized previously,corresponding improvement measures are proposed:firstly,promoting the diversification of taxation incentives in China;secondly,setting differentiated taxation incentive standards to encourage all enterprises The enthusiasm of participating in research and development activities;building a more comprehensive tax system by enhancing the rationality of China’s incentives and innovations for tax incentives;finally,simplifying the approval process and other measures to improve the operability of policies.These suggestions provide some references for optimizing China’s tax preferential policies.