Research On The Impact Of Government Subsidies On Enterprise Innovation

Innovation is an important force for enterprises to gain long-term competitiveness and occupy market share.my country’s economy is going through an important stage from high-speed development to high-quality development.Improving innovation and R&D strength is a necessary way to speed up the transformation of economic development.However,as the main force of innovation,enterprises will face many difficulties in the process of innovative research and development.First,innovation has the characteristics of high risk,high investment and long cycle,which is easy to cause problems such as financing difficulties.It forms a "stumbling block" in the early stage of enterprise innovation,which hinders the enthusiasm of enterprises for innovation and leads to insufficient investment in innovation.Second,innovation requires a large amount of knowledge accumulation,talent reserves and infrastructure support.Similar to the lack of basic resources,the R&D capabilities of enterprises are limited,resulting in a reduction in innovation output.Third,the process of transforming innovation achievements into economic commodities is complex and has high uncertainty.Innovation activities cannot bring economic performance improvement to enterprises in time,and also hinder the virtuous circle of innovation.Based on the existence of the above problems,enterprise innovation cannot meet market demand,resulting in market failure.At this time,as the main body of macro-control,the government has issued financial support policies to encourage enterprise innovation.Tax incentives and government subsidies are the two most important means of support.For high-tech enterprises,they have already enjoyed a 15% preferential income tax policy,so the impact of government subsidies on high-tech enterprises is mainly discussed.The dissertation mainly conducts research from the following three aspects.First,in response to the current debate on the validity of the impact of government subsidies on enterprise innovation,this paper reads and sorts out relevant literature,combining market failure theory,government intervention theory,signal transmission theory,and principal-agent theory.This paper systematically sorts out the path that government subsidies have an impact on enterprise innovation.Secondly,the empirical research selects listed high-tech enterprises from 2010 to 2019 as a sample to analyze the impact of government subsidies on enterprise innovation.Hypotheses are put forward based on theoretical analysis,regression models are constructed according to the research hypotheses,and the least squares method combined with fixed effects is used to test the effect of government subsidies on enterprise innovation from the perspective of the innovation chain of “innovation input-innovation output-innovation economic performance” through empirical evidence..Thirdly,when government subsidies and social financing-venture capital and bank loans work together on enterprises,the impact on enterprise innovation is analyzed,and it is found that the research on the above problems has not reached a unified conclusion,so we further test government subsidies and social financing.At the same time,after entering the enterprise,the interactive impact on each stage of enterprise innovation.At the same time,based on the different nature of enterprises,the heterogeneity test is carried out on the impact of government subsidies on enterprise innovation,and the effect of government subsidies on the innovation of enterprises with different characteristics is compared and analyzed.Finally,based on the theoretical analysis and empirical test results,combined with the actual situation in my country,relevant counter measures and suggestions are put forward.Through theoretical exploration and empirical research in the above three aspects,the following conclusions are drawn:(1)Government subsidies are beneficial to enhance the innovation input and innovation output of enterprises,but have no significant impact on innovation economic performance.(2)Social financing in the form of venture capital improves the incentive effect of government subsidies on enterprise innovation input,innovation output and innovation economic performance,while bank loans fail to interact with government subsidies in three aspects of enterprise innovation.(3)Government subsidies have a more significant effect on promoting innovation in non-state-owned enterprises,the central and eastern regions,large enterprises,and enterprises in the growth stage.Based on the empirical research conclusions,relevant suggestions are put forward: the government will continue to carry out differentiated subsidies,strengthen supervision,promote industryuniversity-research cooperation,improve information exchange platforms,and improve synergy with social financing.Enterprises actively seek innovative development,strengthen their own construction and improve the efficiency of government subsidies.