Research On The Impact Of Additional Deduction Of R&D Expenses On R&D Input Of Manufacturing Enterprises

Since the reform and opening up,China’s economy has experienced rapid development,and its economic strength has also improved significantly.The transformation and upgrading of the economy needs to be promoted by the transformation and upgrading of enterprises,but R&D innovation requires enterprises to invest human and material resources for a long time,and is often risky,with a high possibility of R&D failure.The important concern of relevant government departments in China and the key to successful transformation and upgrading is to make up for the negative effect of positive externalities and high risks of R&D activities on enterprise R&D investment,encourage enterprises to carry out R&D activities,and promote the transformation and upgrading of China’s industrial chain to the top of technology and the construction of a modern industrial system.In order to achieve high-quality development,improve the R&D intensity of enterprises and the overall level of independent innovation in China,China has implemented the policy of additional deduction for R&D expenses for enterprises.This policy helps to reduce the tax burden and R&D cost of enterprises,improve the cash flow of enterprises,and make enterprises have more funds to invest in R&D activities,thus increasing the enthusiasm of enterprises to carry out R&D activities.Based on the theory of market failure and tax incentive,this paper analyzes the policy of additional deduction for R&D expenses and the current situation of R&D investment and output in the manufacturing industry.In order to further analyze the policy effect of R&D investment of manufacturing enterprises,this paper continues to analyze the policy effect from the two heterogeneous factors of the region where the enterprise is located and the nature of equity.The final conclusions show that after the increase of the proportion of additional deduction for R&D expenses is applied,the manufacturing enterprises significantly increase their R&D investment,that is to say,by increasing the proportion of additional deduction for R&D expenses,the R&D investment of enterprises can be increased.Moreover,from the property right nature,the incentive effect of private enterprises to increase the proportion of additional deduction is more obvious;In terms of the region where the enterprises are located,the incentive effect of the increase in the proportion of additional deduction is stronger for the manufacturing enterprises in the western region.In addition,this paper also uses the DID method to conduct robustness test on the data of A-share enterprises on the main board of Shanghai and Shenzhen Stock exchanges from 2019 to 2021,conducts more in-depth research on the policy impact of increasing the proportion of additional deduction,and compares and analyzes the gap of R&D investment intensity of manufacturing enterprises before and after the increase of the proportion of additional deduction.It verifies that increasing the proportion of additional deduction for R&D expenses can promote the reliability of enterprises to increase R&D efforts.Finally,based on the research conclusions of this paper,this paper puts forward feasible suggestions from the perspectives of maintaining the strength of the tax preference of the additional deduction policy and improving the tax incentive policies for different enterprises.