The Impact Of The Additional Deduction Of R&D Expenses On The R&D Investment Of Software Enterprise

Today,innovation has become the strategic goal of every country,who can grasp innovation,who will be able to get ahead in the next technological revolution.As the representative of innovative enterprises,software enterprises occupy an increasingly important position in the national economy after more than ten years of development,and play a crucial role in China’s three-step strategic goal of innovation-driven development.The development level of software enterprises has become an important index to measure innovation level internationally.As the core of the electronic information industry,software companies have good prospects for development,and the development of software enterprises is not achieved overnight,it requires a lot of r&d funds and r&d personnel,but also accompanied by high risk,r&d of sunk cost is higher,the quality that software research and development of enterprises will face a lot of pressure,If software enterprises are allowed to bear such research and development risks alone,it will reduce the motivation of software enterprises’ research and development,especially small and medium-sized software enterprises,so the government needs to introduce policies to intervene.The r&d expense plus deduction is a tax incentive widely used in many countries to encourage r&d investment.Through the way of multi-column expenditure before tax,increase the net profit of the enterprise,equivalent to the virtual financial subsidy of the government.Like other high-tech enterprises,software enterprises attach importance to R&D activities,but different from hightech enterprises,they do not have too many tangible assets.Other manufacturing industries also have tax incentives such as accelerated depreciation of fixed assets,which means that compared with other enterprises,software enterprises are more dependent on the policy of additional deduction for R&D expenses.On the basis of the above background,this thesis studies whether the additional deduction of R&D expenses has an incentive effect on r&d investment of Chinese software enterprises.Does r&d investment in software enterprises in different regions of China produce the same effect? It can provide suggestions for further optimizing the policy of additional deduction of r&d expenses and promoting r&d investment of software enterprises,so as to promote the sustainable growth of software enterprises’ R&D.Research idea of this thesis are as follows: first of all,on the basis of combing the related literature at home and abroad,combining the theory of Schumpeter innovation and market failure theory and the theory of tax expenditure analysis enterprise r&d activities,this thesis expounds the corporate r&d activities have positive externalities,public goods attribute,uncertainty,there is market failure,shows the necessity of the government policy intervention.It also introduces the mechanism of r&d expense additional deduction to stimulate enterprises’ R&D investment,including that the additional deduction can reduce enterprises’ R&D cost,improve enterprises’ profit rate,reduce enterprises’ R&D risk,and increase enterprises’ R&D fund supply,which indicates the feasibility of government policy intervention.Secondly,in this article,through the selection in the ministry of software and data analysis software enterprise information technology services industry at present development condition and current situation of r&d data shows our country software enterprise scale expands unceasingly,the efficiency level is stable and improving,is engaged in the software industry is rising year by year,the number of r&d intensity is far more than national average level,However,it also faces problems such as unbalanced development and large talent gap.Again,in the empirical research,this article through to 189 software listed companies from 2013 to 2019 the public data of construction of double difference model,is with r&d intensity as the explained variable regression analysis,empirical research results are as follows: one is the whole sample regression analysis showed that the claim additional deduction r&d incentive r&d investment in software enterprises significantly.Second,regional grouping regression analysis shows that the incentive effect of additional deduction of R&D cost on software enterprises in eastern China is greater than that in central and western China.Third,by substituting the ratio of r&d personnel for the explained variable r&d investment intensity regression,it is found that the additional deduction of R&D expenses further encourages software enterprises to invest r&d personnel.Finally,based on theoretical and mechanism analysis,development status analysis of software enterprises and empirical results,this thesis puts forward four suggestions for improving the preferential policies of r&d investment of software enterprises,including: Establish risk reserves for R&D investment,improve the policy of additional deduction for R&D expenses,increase tax incentives for software enterprise r&d personnel from the perspective of income tax,and increase support for software enterprises in central and western China.