Research On The Influence Of R&D Expense Plus Deduction Policy On Innovation Of Minor Enterprises

The 20 th Report clearly states that “high-quality development is the primary task of building a modern socialist country in a comprehensive manner.”We will persist in science and technology for the people and intellectual property rights for the people,and guide all kinds of subjects to create development with quality and efficiency.China ranks first in the number of patent applications and authorizations,Thick and thin,standing at a new starting point to accelerate the upgrading and transformation of the industrial chain.China is in a critical period of transformation and upgrading of the industrial chain to provide small and medium-sized enterprises with high-quality innovation to carry out high-quality development of the reform direction.The sustainable development of enterprises lies in the core competitiveness,and technological innovation is the key measure for enterprises to obtain and maintain the core competitiveness.The high-quality innovation has the characteristics of long continuous cycle,large capital demand,complex technology and so on,which suppresses the enterprise,which is the innovation investment of small and weak small and medium-sized enterprises.In recent years,the beneficiary body of the pre-tax deduction policy of research and development expenses and the scope of research and development expenses collection have been increasing the incentive in the process of continuous adjustment,it is an important initiative of the Party Central Committee and the State Council to implement the innovation-driven strategy and accelerate the building of a world-level power.incremental R&D expenditure has not supported the long-term development of SMEs,which is known as the science and technology trap of F country.Therefore,it is necessary to deeply study the incentive effect of R&D cost tax deduction policy on high quality innovation of small and medium-sized enterprises in the context of China’s specialization system,so as to give full play to the role of innovation-driven economy.After reviewing the existing literature research and defining the meaning of highquality innovation and small and medium-sized enterprises,this paper first expounds the theory of endogenous economic growth,the theory of market failure and the theoretical knowledge of tax effect.From the perspective of the evolution of R&D cost plus deduction policy,this paper summarizes the achievements of the innovation and development of small and medium-sized enterprises.Thirdly,this paper draws lessons from the previous theoretical model,and puts forward three hypotheses.Based on the provincial panel data from 2015 to 2020,taking the addition and deduction of R&D expenses as an example,an empirical study is carried out by using the fixed effect model.The results show that:(1)The incentives do increase the innovation output of SMEs to some extent,but it has no obvious promoting effect on the transformation of innovation achievements,that is,high quality innovation,and SMEs generally lack the autonomy of industrial core technology,which is still true after a series of robustness tests;(2)there is regional heterogeneity in the impact of R&D cost addition and deduction on the substantive innovation of SMEs.Combined with the research conclusions,in order to improve the policy system of addition and deduction of R&D expenses,this paper puts forward the following four suggestions:synthesizing the management ability of small and medium-sized enterprises,simplifying the policy of collecting R&D expenses;implementing the tax credit policy of R&D expenses;implementing the preferential tax policies to reward the transformation of innovative achievements;and implementing the differentiated tax policies among regions.When perfecting the tax policy of R&D expenses,we should consider the differences such as regional development level to improve the accuracy of the policy.Grasp the Development situation of small and medium-sized Enterprises in an all-round way and judge the opportunities and challenges faced by small and medium-sized enterprises,focusing on original and significant output results accurately mastering the effectiveness of tax policy,it can provide strong support for SMEs to cultivate innovation momentum.