Impact of Tax Incentives on the Efficiency of Corporate Technological Innovation

摘要

By utilizing the 2010–2018 data of A-share listed companies in China, the corporate innovation efficiency is measured using the DEA model — the mechanism whereby tax incentives affect innovation efficiency is explored, and the moderating effects of property right nature and market competition on innovation motivation policies are analyzed. As the empirical results demonstrate, the overall level of technological innovation is rather low among China’s listed companies. Tax incentives play a significant role in promoting the efficiency of corporate technological innovation. Heterogeneity is present in their effect. In other words, tax incentives can significantly enhance the corporate innovation efficiency for non-state-owned enterprises while producing an insignificant effect in the case of state-owned enterprises. Furthermore, the degree of market competition increases the incentive effect of preferential tax policies with fiercer market competition, which reflects a more distinct effect of such policies. On the basis of these findings, policy suggestions are proposed for further perfecting the preferential tax policies and enhancing the efficiency of corporate technological innovation.