Innovative Government Subsidies,financing Constraints And Enterprise R&D Investment

This paper takes 3739 sample data of China’s A-share GEM listed companies from 2010 to 2019 as the research object,discusses the impact of innovative government subsidies on enterprise financing constraints and R&D investment,and explores the role of equity financing in enterprise external financing between innovative government subsidies and enterprise R&D investment.Further research found that enterprises in different regions and different types of government subsidies have significant differences in the impact on Enterprise R&D investment.Firstly,this paper introduces the background and significance of the research.With the slowing down of China’s economic development and the overcoming of global protectionism and the negative impact brought by COVID-19,China’s macro-economy is facing a severe test.The strategic innovative industry with scientific and technological enterprises as the main body is becoming an indispensable part of China’s economic transformation and high-quality development,and plays an increasingly important role in China’s current economic development.Secondly,this paper combs the contents of innovative government subsidies,enterprise financing constraints,enterprise external financing and enterprise R&D investment in domestic and foreign literature.Based on the research results of many scholars,combined with relevant theories and the new situation of China’s macroeconomic development,this paper discusses the significance of the government’s incentive and support for scientific and technological innovative companies.Secondly,this paper puts forward the research hypothesis and model construction method on the basis of literature review and theoretical analysis,.The results show that innovative government subsidies play a role in alleviating corporate financing constraints and stimulating enterprises to increase R&D investment,and innovative government subsidies can increase external financing of enterprises through signal transmission.The increase of external financing is mainly reflected in equity financing rather than debt financing.In addition,the equity financing of enterprises has a significant partial mediation effect between innovative government subsidies and enterprise financing constraints.Further research found that the stimulating effect of innovative government subsidies on Enterprise R&D investment is more obvious in the eastern region of China,while the stimulating effect of equity financing on Enterprise R&D investment is not obvious in the central and western regions of China because of their relatively low level of economic development and financial industry development.This study also found that the impact of non innovative government subsidies on external financing of enterprises is also not obvious.Finally,this paper summarizes the results of the empirical test,and puts forward the following suggestions to the competent authorities:(1)Continue to play the leading role of innovative government subsidies;(2)Further improve the scientificity of subsidy policy formulation;(3)Continuously improve the capital market system and mechanism,and improve China’s multi-level capital market system;(4)Continue to increase support for China’s central and western financial underdeveloped areas.In addition,this paper looks forward to the future research content and direction related to innovative government subsidies.