Tax Incentives,R&D And Enterprise Innovation

During the "14th Five-Year Plan" period,with the continuous development of science and technology,China’s artificial intelligence,Internet of Things,blockchain,cloud computing and 5G and other new generation of information technology have been developed rapidly,playing an indispensable and important role in promoting the transformation of China’s economic development,and new products and new development models have come and gone,which have increasingly become the leading and pillar industries to promote New products and new development models are emerging,and it is increasingly becoming a pioneering and pillar industry to promote the transformation of China’s development momentum.With its foresight,high innovation and wide application,the new generation of information technology is deeply reshaping the new competitive advantage of enterprises,providing important support for the new round of industrial revolution and building a new pattern of global economic development.At the same time,the R&D and innovation activities of enterprises are also showing a new momentum in the market.The technology and innovation of industrial development are growing more rapidly.Therefore,in this context,the key to ensure the competitiveness of the market is for enterprises to strengthen their R&D investment.If the enterprises’ R&D investment does not keep up with the needs of the times,then their R&D innovation capabilities will inevitably be behind other exhibitors in the same sector,thus causing the overall development level of the enterprises to be gradually pulled down.Compared with other industries,new-generation information technology enterprises have higher requirements for R&D innovation activities and pay more attention to R&D investment research.Based on this,the government generally gives specific tax incentives to support this industry,and its policy effects are worth exploring in depth.The research of this essay mainly comprises the following parts: First of all,we introduce the theories of tax regulation,technological innovation,externality and signaling,and through these theories,we explain the mechanism of the role of tax incentives on the R&D input and innovation output of enterprises.Secondly,the presentstate of development of new generation IT enterprises is evaluated in terms of R&D commitment and innovation output,and it is found that the overall R&D commitment and innovation output of new generation IT industry are not motivated sufficiently,and companies need to upgrade their incentives to undertake R&D and innovation campaigns.Then,by compiling previous literature and related data,this paper adopts 629 new-generation IT enterprises which are listed in Shanghai and Shenzhen A-shares from 2016 to 2021 as the target of the study,and constructs a fixed effects analysis model to examine the influences of tax benefits on R&D investments and innovation outcomes of new-generation IT corporations from the comprehensive tax credit perspective,and on this basis,separately analyzes the tax-based benefits and On the basis of this model,we also analyze the relationship between two specific methods,namely,tax-based preferences and R&D expense deduction,and the R&D investments and innovation output of the companies.The outcomes indicated that:(1)tax concession could significantly promote the new generation of IT enterprises to strengthen their R&D engagement.(2)Tax discounts have a significantly more positivve interaction with the innovation output of new generation Itventures.(3)For new generation IT enterprises,tax incentives can increase their innovation output by increasing their R&D income.(4)The two types of tax incentives are considered separately in this paper: tax-based incentives and R&D cost-added deductions,and the latter is better than the former in terms of the effect on the R&D input and innovation output of enterprises.Finally,this paper proposes corresponding countermeasures based on the above research findings:on the one hand,the government should strengthen its support for enterprises’ R&D investment,pay attention to the interplay between different tax incentives,and have a corresponding service evaluation structure in order to strive for the most optimal policy composition.On a second hand,it is necessary to strengthen the guiding and targeting of tax preferential policies and regulate the R&D innovation system of new generation IT enterprises,etc.