The Review of the Impact of the Tax Incentive Policies and Fiscal Policies on R & D at the Firm Level

Yafeng Hu; Weiguang Ju; Ke Gao

doi:doi:10.11648/j.ijefm.20190701.11

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The Review of the Impact of the Tax Incentive Policies and Fiscal Policies on R & D at the Firm Level

Yafeng Hu, Weiguang Ju, Ke Gao

Published in International Journal of Economics, Finance and Management Sciences (Volume 7, Issue 1)

Received: 10 December 2018 Published: 1 February 2019

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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.

Published in	International Journal of Economics, Finance and Management Sciences (Volume 7, Issue 1)
DOI	10.11648/j.ijefm.20190701.11
Page(s)	1-5
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2019. Published by Science Publishing Group

Keywords

Innovation, Fiscal and Tax Policies, Market Failure

References

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[7]	Wang Min, Li Liang. (2014). Research on the Effect of Tax Preferential Policies to Incentivize SMEs' Technological Innovation. Statistics & Decision. (24):170-173.
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[9]	LIN Zhou-yu, LIN Han-chuan, et al (2013) Corporate Income Tax Reform and Technological Innovation of Chinese Firms. China Industrial Economics (03):111-123.
[10]	LI Wangfu, DU jing, et al (2017). DoＲ＆D Subsidies Ｒeally Stimulate Firms’ R & D Self － financing Investment: New Evidence from China’s Listed Firms. Journal of Financial Research (10):130-145.
[11]	Zhang Jie, Chen Zhiyuan, et al. (2015). On Evaluating China’s Innovation Subsidy policy: Theory and Evidence. Economic Research Journal 50 (10):4-17+33.
[12]	González, X. and C. Pazó (2008). "Do public subsidies stimulate private R & D spending?" Research Policy 37 (3): 371-389.
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[17]	Czarnitzki, Dirk, Bernd Ebersberger, and Andreas Fier. "The Relationship between R & D Collaboration, Subsidies and R & D Performance: Empirical Evidence from Finland and Germany." Journal of Applied Econometrics 22, no. 7 (2007/12/01 2007): 1347-66.
[18]	Blanes, J. V. and I. Busom (2004). "Who participates in R & D subsidy programs? The case of Spanish manufacturing firms." Research Policy 33 (10): 1459-1476.
[19]	Andrew A. Toole (2007). "Does Public Scientific Research Complement Private Investment in Research and Development in the Pharmaceutical Industry?" The Journal of Law and Economics 50 (1): 81-104.
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APA Style

Yafeng Hu, Weiguang Ju, Ke Gao. (2019). 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, 7(1), 1-5. https://doi.org/10.11648/j.ijefm.20190701.11

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ACS Style

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. Int. J. Econ. Finance Manag. Sci. 2019, 7(1), 1-5. doi: 10.11648/j.ijefm.20190701.11

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AMA Style

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. Int J Econ Finance Manag Sci. 2019;7(1):1-5. doi: 10.11648/j.ijefm.20190701.11

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@article{10.11648/j.ijefm.20190701.11,
  author = {Yafeng Hu and Weiguang Ju and Ke Gao},
  title = {The Review of the Impact of the Tax Incentive Policies and Fiscal Policies on R & D at the Firm Level},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {7},
  number = {1},
  pages = {1-5},
  doi = {10.11648/j.ijefm.20190701.11},
  url = {https://doi.org/10.11648/j.ijefm.20190701.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20190701.11},
  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.},
 year = {2019}
}

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TY  - JOUR
T1  - The Review of the Impact of the Tax Incentive Policies and Fiscal Policies on R & D at the Firm Level
AU  - Yafeng Hu
AU  - Weiguang Ju
AU  - Ke Gao
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PY  - 2019
N1  - https://doi.org/10.11648/j.ijefm.20190701.11
DO  - 10.11648/j.ijefm.20190701.11
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 1
EP  - 5
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20190701.11
AB  - 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.
VL  - 7
IS  - 1
ER  -

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Author Information

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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APA Style

Yafeng Hu, Weiguang Ju, Ke Gao. (2019). 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, 7(1), 1-5. https://doi.org/10.11648/j.ijefm.20190701.11

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ACS Style

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. Int. J. Econ. Finance Manag. Sci. 2019, 7(1), 1-5. doi: 10.11648/j.ijefm.20190701.11

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AMA Style

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. Int J Econ Finance Manag Sci. 2019;7(1):1-5. doi: 10.11648/j.ijefm.20190701.11

Copy | Download

@article{10.11648/j.ijefm.20190701.11,
  author = {Yafeng Hu and Weiguang Ju and Ke Gao},
  title = {The Review of the Impact of the Tax Incentive Policies and Fiscal Policies on R & D at the Firm Level},
  journal = {International Journal of Economics, Finance and Management Sciences},
  volume = {7},
  number = {1},
  pages = {1-5},
  doi = {10.11648/j.ijefm.20190701.11},
  url = {https://doi.org/10.11648/j.ijefm.20190701.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20190701.11},
  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.},
 year = {2019}
}

Copy | Download

TY  - JOUR
T1  - The Review of the Impact of the Tax Incentive Policies and Fiscal Policies on R & D at the Firm Level
AU  - Yafeng Hu
AU  - Weiguang Ju
AU  - Ke Gao
Y1  - 2019/02/01
PY  - 2019
N1  - https://doi.org/10.11648/j.ijefm.20190701.11
DO  - 10.11648/j.ijefm.20190701.11
T2  - International Journal of Economics, Finance and Management Sciences
JF  - International Journal of Economics, Finance and Management Sciences
JO  - International Journal of Economics, Finance and Management Sciences
SP  - 1
EP  - 5
PB  - Science Publishing Group
SN  - 2326-9561
UR  - https://doi.org/10.11648/j.ijefm.20190701.11
AB  - 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.
VL  - 7
IS  - 1
ER  -

Copy | Download