The Impact Of Government Subsidies On Enterprise Innovation

In today’s technology leading the world background,enterprise innovation activities are an important pillar of economic development.However,at the internal level,the knowledge spillover generated by the nature of the public attribute of innovation activities damages the interests of enterprises and reduces the willingness to innovate.At the external level,market information asymmetry and market failure bring financing difficulties to enterprises.Therefore,the government subsidy,as an external auxiliary,has become an important factor to encourage enterprises to innovate,but under the influence of rent-seeking activities,its action mechanism still needs to be further studied.This paper complements existing research both empirically and empirically based on this research background.Space economics began to appear in the 1990 s,and the production principle and influence mechanism of geographical agglomeration have become a key research object in academic circles.The spatial agglomeration of enterprises will produce the positive effect of cooperation and communication,and will also form the negative impact of competition and "free ride",which will have a significant impact on the development path and process of enterprises,and ultimately affect the process of social and economic development.However,the research on the mechanism of geographical agglomeration is not comprehensive and in-depth enough from the empirical and theoretical perspectives.This paper studies the mechanism of government subsidy on enterprise innovation from the perspective of geographical agglomeration and its different forms,and analyzes the influence mechanism of macro perspective on micro activities.Therefore,this paper applies the enterprise innovation theory,signal transmission theory,market failure theory and geographical agglomeration theory to the unified system,and builds a framework of the influence mechanism of government subsidy on enterprise innovation and how geographical agglomeration plays a regulatory role in it.Then adopt panel fixed effect model,apply the theoretical framework to CSMAR and CNRDS database of A-share manufacturing in 2012-2016 data.The enterprise innovation is divided into overall innovation,substantive innovation and nonsubstantive innovation,to investigate for different enterprise nature and technical nature,government subsidies how to promote enterprise innovation and specialized agglomeration and diversified agglomeration in the regulation,which will supplement theoretically and empirically the existing government subsidies for enterprise innovation and the relationship with geographical agglomeration research.The main conclusions and recommendations of this paper are follows:In general,government subsidies have a significant positive impact on the overall innovation and substantive innovation of enterprises,and specialized geographical agglomeration has a direct impact on the innovation of enterprises,but it does not play a significant role in regulating the innovation of enterprises.Diversified agglomeration does not significantly affect enterprise innovation,and diversified agglomeration does not significantly regulate the impact of government subsidies on enterprise innovation.Therefore,the government should pay attention to the promoting role of government subsidies on enterprise innovation,and specify policies in selecting enterprises,supervising the use of subsidies and implementing the credit mechanism.Reduce financing constraints,increase tax incentives,improve infrastructure,enhance enterprise exchanges,and attract enterprises to gather in the region.Among different enterprise properties,government subsidies promote the overall innovation and substantive innovation of non-state-owned enterprises,which have no impact on the innovation activities of state-owned enterprises.For non-state-owned enterprises,specialized agglomeration will only directly promote enterprise innovation,and will not indirectly play a regulatory role in the process of government subsidies on enterprise innovation.Diversified agglomeration will only play a regulatory role in the government subsidies on the substantive innovation of enterprises.For state-owned enterprises,specialized agglomeration will only directly promote overall innovation and substantive innovation,while diversified agglomeration will not significantly affect enterprise innovation.Therefore,it is suggested that the government should first pay attention to the subsidies of private enterprises and foreign-funded enterprises in non-state-owned enterprises,so as to facilitate the agglomeration of non-state-owned enterprises,stimulate the market competition potential of non-state-owned enterprises,and enhance the innovation ability of state-owned enterprises.Among different technological properties,government subsidies can promote the overall innovation and substantive innovation of high-tech enterprises,but they do not significantly affect the enterprise innovation of non-high-tech enterprises.For high-tech enterprises,specialized agglomeration will only directly promote the innovation of their enterprises,while diversified agglomeration will directly promote the non-substantive innovation,and play a regulatory role in promoting the substantive innovation through government subsidies.For non-high-tech enterprises,specialized agglomeration only directly promotes enterprise innovation,and diversified agglomeration does not affect their innovation activities.Therefore,it is suggested to strengthen the analysis of the innovation process of high-tech enterprises,improve the efficiency of subsidies,and enrich the subsidy methods of high-tech enterprises,such as holding technical seminars.We will develop high-tech leading enterprises,enhance the agglomeration effect,and actively improve the agglomeration degree of high-tech enterprises by reducing regional barriers and establishing agglomeration centers.Enterprises should fully provide government subsidies to improve the output of innovation activities,conduct reasonable site selection and communication,and make use of the advantages of agglomeration.