An Analysis Of The Superimposed Effect Of Tax Policies To Stimulate R&D Input On Firms’ Innovation Output

Innovation driving is the destiny of a nation and the trend of the world.China not only need innovation to build new engine of economic development,but also need to innovate and win the initiative in the important historical opportunities to catch up with and surpass other countries.Under this background,China is constantly increasing the incentive of enterprise innovation.In this context,China has continuously increased the incentive for enterprise innovation.In real business,most enterprises can also enjoy a variety of tax policies at the same time.However,it is worth discussing whether there is mutual substitution between the policy superposition effects,whether different policies can synergize to promote enterprise innovation,and whether the more tax policies given to enterprises,the better.In order to study the above issues,this paper first uses the policy literature research method to analyze the existing literature,related concepts,China’s R&D status,and the single tax policy and multiple policy superposition mechanism.It is concluded that it is necessary to give tax incentives to enterprise R&D,but there may be alternative or complementary effects of multiple policies.Then,this paper uses empirical analysis to test the effect of the superposition of single policy and multiple policies on enterprise innovation output.This paper selects the data of A-share listed companies from 2014 to 2020,and empirically tests the incentive effect of single and multiple tax policy on enterprise innovation output by controlling firm-level characteristics as well as individual fixed effects.Regression results found that tax policy in general is advantageous to the promotion enterprise’s invention patent applications.Applied to deduct tax preferential policies with high and new technology enterprise and the additional deduction policy,the deduct tax preferential policies with high and new technology enterprise and the accelerated depreciation policy,mainly assume the substitution effect.Complementary effect and substitution effect between additional deduction and accelerated depreciation policies are reflected.Among the overlay,the substitution effect is more significant.At the same time,this paper tests the policy effects of strengthen the proportion of additional deduction and expansion the adoption of accelerating the depreciation,and concludes that the strengthening and expansion of these policies can promote the innovation output of enterprises.Then,it provides reference for China’s policy improvement based on international experience.Through the introduction of the international change trend of tax incentive policies,this paper believes that the superposition of various tax policies has reduced the tax burden of enterprises.However,considering the tax burden of countries around the world,the lower the tax burden is,the higher the intensity of a country’s R&D investment is not necessarily,but the relationship between tax burden and education and other factors affecting innovation needs to be considered from the perspective of society as a whole.In terms of the coordination of policy superposition,there is a trend that tax credits replace additional deductions and pay attention to the increment of R&D investment.In terms of key support,countries pay attention to support for small and medium-sized enterprises,basic research,production,education and research,and also use more incentive methods in the application of innovation output.These can be used for reference to improve our policy.In conclusion,based on theoretical analysis,empirical analysis and international experience,suggestions for further improvement are put forward.This paper argues that we should correctly understand the incentive effect of tax preferential policies,break the understanding that the more tax preferential policies,the greater the incentive effect of enterprises,and coordinate various policies.At the same time,we will strengthen the role of a single policy in promoting research and development,so that the policy can be more precise.Specifically,in terms of direct incentive policies,update the applicable fields of policies;in terms of the additional deduction policy,explore the tax credit policy and pay attention to the increment of R&D expenditure and the support for SMEs;in terms of accelerated depreciation policy,the one-time deduction limit for fixed assets for research and development will be increased;coordinate various policy statements to reduce the cost of enterprises to enjoy policies;increase the tax policy to encourage the use of innovative output.