Research On The Impact Of Additional R&D Expense Deduction On The Innovation Output Of Enterprises

Since the 18 th National Congress of the Communist Party of China,China has continued to implement the innovation-driven development strategy in depth,andhas successfully ranked among the innovative countries,with remarkable achievements.The report of the 20 th CPC National Congress further emphasized that enterprises should play a leading role in scientific and technological innovation.As the core tax policy to promote enterprise innovation,the additional R&D expense deduction has been subject to many reforms and deepening in recent years,and has continued to attract the attention of the whole society,with many hopes for its incentive effect.In this paper,based on the analysis of the theory and relevant current situation of the additional R&D expense deduction policy,the B index,which is rarely used in similar research,is introduced,and compared with the existing research results,the incentive effect of the additional R&D expense deduction policy on the innovation output of enterprises,as well as the mechanism and influencing factors,are comprehensively investigated from the three dimensions of output quantity,quality and efficiency,in order to have a comprehensive and systematic understanding and grasp of the policy,It also provides ideas and policy suggestions for the further promotion of the R&D expense deduction policy.This paper first expounds the relevant economic theories involved in the policy of R&D expense deduction,including market failure theory,Schumpeter innovation theory,endogenous growth theory,etc.,and points out that this policy effectively alleviates the inefficient allocation of market failure resources caused by the quasi-public product attribute,positive externalities,information asymmetry,risk factors and other characteristics of innovation,which can increase innovation output and promote economic growth.On this basis,this paper carries out a longitudinal policy evolution,a brief introduction to the current policy,and a horizontal international analysis and comparison of the additional R&D expense deduction policy itself,and analyses and introduces the current situation of innovation in China from the perspective of R&D investment and R&D output,highlighting the dominant position of enterprises in innovation,and introduces the innovation situation of representative top 500 enterprises.In view of the outstanding problems existing in China’s innovation at the present stage,this paper also makes a brief analysis.After theoretical analysis and current situation analysis,this paper puts forward relevant research assumptions,selects the relevant data of the sample listed companies in the photovoltaic industry,which is a relatively representative industry,for empirical analysis from 2007 to 2021,and introduces the B index to assist in measuring the strength of the additional deduction of incentives,and studies its impact on the number of innovation output.On this basis,it further studies from the two dimensions of quality and efficiency,It also studies the financing constraints that may be used as intermediary variables.In addition,this paper also analyses and studies the heterogeneity of sample enterprises in terms of property right nature and enterprise life cycle.The results show that the policy of the additional R&D expense deduction has significantly increased the number of innovation output of enterprises.This conclusion is still valid after the lag regression and excluding the impact of COVID-19 epidemic.The additional deduction of R&D expenses also promote the innovation output of enterprises in terms of quality and efficiency.The additional deduction policy alleviates the financing constraints faced by enterprises,and then indirectly increases the innovation output of enterprises.Financing constraints play an intermediary role in this process.In terms of enterprise heterogeneity,non-state-owned enterprises have better incentive effect than state-owned enterprises;The incentive effect of enterprise policies in the growing period is better than that in the mature and declining periods.Finally,based on the results of empirical analysis and relevant current situation,this paper proposes that the differentiated additional deduction ratio should be further implemented in policy recommendations.Specifically,the top-level system design of the differentiated additional deduction ratio can be carried out from three aspects:strengthening the quality and efficiency orientation of innovation output,implementing the differentiated additional deduction ratio according to different life cycle characteristics,and focusing on innovation weaknesses.In addition,the use of tax policies to ease the financing constraints of enterprise R&D activities,optimize the business environment of non-state enterprises,and pay attention to the coordination and cooperation between different fiscal and tax policies are also the optional directions for the next step of the reform of the additional deduction policy.