The Impact Of Government Subsidies On Business Innovation

Under the background of economic globalization,innovation has become the enterprise own development and even national maintain leading position,the important factors that affected by internal and external risk,however,the innovation of the enterprise is often difficult,therefore,the state has successively promulgated a number of encouraging innovation subsidy policy,but there is information asymmetry between government and enterprises as well as the effect of government subsidy to the enterprise innovation in the life cycle of each are not identical,to government subsidy can not achieve the best effect,even may appear waste resources phenomenon.Therefore,it is of great significance to explore the influence mechanism and effect of government subsidies on enterprise innovation in each life cycle for improving the efficiency of government subsidies and improving subsidy policies.Based on the above background,this paper first introduces the general situation of the case company BOE and its acceptance of government subsidies.Then the correlation analysis of the relationship between government subsidies and enterprise innovation is carried out,and then the DEA model is constructed to comprehensively analyze the impact of BOE’s government subsidies on enterprise innovation from the overall perspective.Then from the perspective of direct impact and indirect impact,this paper discusses the effect of government subsidies on BOE’s enterprise innovation in different life cycles as well as specific ways.Finally,the paper explains the effect by factor analysis.Through the above analysis,relevant conclusions can be drawn: First,on the whole,government subsidies play a positive role in enterprise innovation.Second,the direct impact of government subsidies on corporate innovation is the most effective in the mature stage,while the indirect impact is the best in the growth stage.Third,the long-term effect of government subsidies is better than the short-term effect.In the end,in order to improve the effectiveness of government subsidies,this paper puts forward proposals from the perspectives of the government and enterprises,and puts forward directional improvement measures.From the perspective of enterprises: mature enterprises need to reduce their dependence on government subsidies and attach importance to enterprise innovation;Enterprises should actively cooperate with government subsidies according to their own cycle;Enterprises need to improve risk awareness and pay attention to the improvement of innovation ability.From the perspective of the government: to increase the growth of the enterprise subsidies;Strengthen the supervision of government subsidies and disciplinary measures.