Research On The Impact Of China’s Preferential Tax Policies On The Innovation And Research Of Biopharmaceutical Enterprises

Biomedicine is a new industry that applies biotechnology to medical field.Since entering the 21 st century,benefiting from the rapid development of biotechnology,the biopharmaceutical industry has also ushered in a period of vigorous development.Many diseases that were difficult to overcome in the past have been solved,making great contributions to human health.With the support and guidance of national policies,China’s bio-pharmaceutical industry has made great progress.As of 2020,the market size of the national biopharmaceutical industry has reached RMB3.57 trillion and is expected to exceed RMB4 trillion by 2022.Vigorously developing the bio-pharmaceutical industry not only meets the requirements of China’s high-quality development,but also meets the people’s pursuit of personal life,health and family happiness.However,compared with some developed countries,China’s bio-pharmaceutical enterprises still have the problems of weak independent innovation capability and insufficient research and development investment.As an important tool for the state to carry out macro-control,the implementation of its preferential policies can have a certain impact on the economic behavior of enterprises.Therefore,this paper uses the method of combining theoretical analysis with empirical research to specifically explore the impact of China’s preferential tax policies on the innovation and research of biomedical enterprises.This paper takes 160 A-share listed bio-pharmaceutical companies as the research object,selects their financial related information from 2016 to 2021 as the sample data,and makes an empirical analysis through Stata software.The study found that China’s preferential tax policy can motivate bio-pharmaceutical enterprises to increase investment in research and development,and the incentive effect will show differences depending on the region in which the enterprises are located and the size of the enterprises.Compared with the central and western regions,enterprises in the eastern regions are more significantly encouraged by the preferential tax policies.Compared with small and medium-sized enterprises,large-sized enterprises are more vulnerable to the impact of preferential tax policies.Based on the theoretical analysis and empirical research in this paper,in order to further play the role of incentives of tax incentives and promote the improvement of innovative research and development capabilities of China’s bio-pharmaceutical enterprises,on the premise of determining the reform ideas,the following suggestions are put forward for China’s current tax incentives: appropriate reduction of the identification standard of tax incentives,optimization of tax incentives at the stage of transformation of results,enhancement of support for innovative research and development personnel,implementation of tax incentives for corporate financing,implementation of differentiated research and development expenses plus deduction policy and other related supporting policy reform proposals.