Research On The Effect Of Enterprise Income Tax Preferences On Innovation Performance Of Manufacturing Firms

Innovation is the driving force of national development and progress,and improving the overall innovation capability is an inevitable choice to enhance a country’s comprehensive national power.The manufacturing industry is the foundation of the real economy and the key to achieving high-quality development.However,a series of "neck" technology problems have seriously affected the development of manufacturing enterprises.In order to encourage innovation of manufacturing enterprises,the government has formulated and implemented many preferential enterprise income tax policies,and it is worth exploring whether these policies have effectively promoted the innovation of such enterprises and improved their innovation performance.Based on externality theory,information asymmetry theory,tax incentive theory,innovation theory,uncertainty and risk theory,this paper firstly dissects the mechanism of the effect of enterprise income tax preferences on the innovation performance of manufacturing firms.Secondly,using the data of A-share manufacturing enterprises from2010-2019 as the research sample,the impact of enterprise income tax preferences on the innovation performance of manufacturing enterprises is measured by using a two-way fixed-effect model.The findings of this paper are as follows:(1)Corporate income tax incentives have a significant contribution to the innovation performance of manufacturing firms,and the results remain robust after adding control variables,lagging the explanatory variables,and replacing the explanatory variables to measure the effect.(2)In terms of property rights differences,EITC has a significant promoting effect on the economic performance of both state-owned and non-state-owned manufacturing enterprises,but its promoting effect is stronger for state-owned manufacturing enterprises;EITC has a significant promoting effect on the technological performance of non-state-owned manufacturing enterprises,while it has no significant effect on the technological performance of state-owned manufacturing enterprises.(3)In terms of regional differences,EITC has a significant promoting effect on the economic performance of manufacturing enterprises in the eastern,central and western regions,and the promoting effect increases in order;EITC has a significant promoting effect on the technological performance of manufacturing enterprises in the eastern region,but has no significant promoting effect on the technological performance of manufacturing enterprises in the central and western regions,and even has an inhibiting effect.(4)The influence mechanism of corporate income tax preferences on manufacturing enterprises’ innovation performance indicates that corporate income tax preferences mainly enhance manufacturing enterprises’ innovation performance through increasing R&D investment.At present,China’s economy is in the stage of high-quality development,and manufacturing enterprises,as the main body of innovation,should take up the heavy responsibility of innovation and adhere to the innovation-driven development path.Only by fundamentally solving the technical problems that restrict their development through innovation can they gain competitive advantages,create more economic profits and achieve long-term development.The research in this paper not only enriches the study of corporate income tax preferences at the micro level,but also measures the innovation performance of enterprises from two aspects,which enriches the study of corporate innovation performance.According to the conclusion of the study,manufacturing enterprises should make full use of corporate income tax preferential policies;enhance their independent innovation capability and improve their innovation performance.The government should formulate differentiated corporate income tax preferential policies;stimulate manufacturing enterprises to increase R&D investment;enhance the innovation awareness and stimulate the innovation potential of manufacturing enterprises.