The Review of the Impact of the Tax Incentive Policies and Fiscal Policies on R & D at the Firm Level
International Journal of Economics, Finance and Management Sciences
Volume 7, Issue 1, February 2019, Pages: 1-5
Received: Dec. 10, 2018; Published: Feb. 1, 2019
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Authors
Yafeng Hu, School of China Academy of Public Finance and Public Policy, Central University of Finance and Economics, Beijing, P. R. China
Weiguang Ju, Development Research Center of Shandong Provincial People’s Government, Jinan, P. R. China
Ke Gao, Development Research Center of Shandong Provincial People’s Government, Jinan, P. R. China
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Abstract
Based on the research and review of existing literature, this paper finds that the effects of government public policies (including fiscal policies and tax policies) on enterprise innovation can be roughly divided in to the following three categories. Firstly, the government's public policies are encouraging enterprise innovation. When companies are stimulated by public subsidies or tax incentives, they will increase investment in R & D and innovation. Secondly, the government's public policy has inhibited enterprise innovation. When enterprises receive the public subsidies from the government or enjoy the related tax incentives, they often do not increase the investment in research and innovation, but simply reduce the investment on R & D. Thirdly, there is no significant or non-linear relationship between government public policy and enterprise innovation. There is no significant correlation or complex non-linear relationship between whether enterprises increase their investment in R & D innovation and the government's public subsidies and other policies. At the same time, the author found that most of the existing research samples are large enterprises in developed countries. Furthermore, there is a lack of relevant research on small and medium-sized enterprises in developing countries. SMEs account for the vast majority of the whole enterprises, so it is meaningful to study the impact of government subsidies and tax incentives on SMEs' innovation.
Keywords
Innovation, Fiscal and Tax Policies, Market Failure
To cite this article
Yafeng Hu, Weiguang Ju, Ke Gao, The Review of the Impact of the Tax Incentive Policies and Fiscal Policies on R & D at the Firm Level, International Journal of Economics, Finance and Management Sciences. Vol. 7, No. 1, 2019, pp. 1-5. doi: 10.11648/j.ijefm.20190701.11
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