Research On The Mechanism Of Government R&D Financial Support Affecting Corporate Innovation Performance

The enterprises play a fundamental role in technological innovation.Improving the capability of innovation for enterprises as well as accelerating the establishment and improvement of the enterprise-led technological innovation mechanism is of great significance for promoting the innovation-driven development strategy.The financial support from government fiscal funds for corporate R&D activities has increased in recent years.Exploring the mechanism of government R&D financial support on corporate innovation performance is helpful to evaluate the effectiveness and efficiency of government fiscal policies,thus further improving government support and guidance from a fiscal perspective in order to promote corporate technological innovation.Based on the above research background,this paper studies the impact of government R&D financial support on corporate innovation performance through theoretical analysis and empirical models.To begin with,it introduces government R&D financial support and enterprises' behavior of innovation and other related concepts.Then,it sorts out relevant theoretical literature at home and abroad,and analyzes the theoretical mechanism of government R&D financial support for corporate innovation.In addition,it uses the relevant data of industrial enterprises above designated size from 2010 to 2018 as a sample,construct a panel regression model,and empirically study the correlation between government R&D funding and corporate innovation performance.The conclusions of the study can be listed as follows:(1)Government R&D financial support can enhance the innovation performance of enterprises,and supporting corporate innovation through direct fiscal funds can reduce the costs and risks of corporate innovation and improve the enthusiasm for innovation of private sector.(2)Government R & D financial support also has a suppressive effect on corporate innovation,hence government R&D funding and corporate innovation performance present a non-linear correlation.There is a double threshold effect on government R&D financial support and corporate innovation performance in different industries.As the government R&D funding increases and exceeds the second threshold,the positive effects of government financial support in promoting corporate innovation become apparent;the impact of government R&D financial support on corporate innovation performance in different provinces also has a double threshold effect.When the government R&D financial support exceeds the second threshold,it has an obvious positive effect on improving corporate innovation performance.Finally,based on the conclusions of study,this paper proposes corresponding suggestions to further improve innovation capabilities of enterprises and promote long-term high quality development of China.