The Impact of Tax Incentives, Government Funding, and R&D Investments on the Innovation Effectiveness of Chinese High-Tech Companies
DOI:
https://doi.org/10.24191/5k164s58Keywords:
Tax Incentives, Government Funding, R&D Investments, Innovation Effectiveness, Chinese High-Tech CompaniesAbstract
Tax incentives, government funding, and R&D investments are pivotal policy and internal drivers of innovation in Chinese high-tech firms, as they facilitate technological progress, resource accumulation, and enhanced innovation effectiveness. However, existing studies lack clarity about their specific mechanisms, empirical links to innovation effectiveness, and targeted verification using large-sample panel data. This study empirically tests the direct positive relationships between innovation effectiveness and key factors among Chinese high-tech enterprises, providing theoretical and practical support for policy optimization and enterprise innovation management. Based on the CSMAR database, 347 high-tech firms were selected, yielding 2,082 annual observations from 2019 to 2024. A quantitative approach combining panel data and time-series analysis is adopted, with SPSS for OLS regression and EViews for dynamic trend exploration. Diagnostic and robustness tests are conducted to ensure the validity of the results. Empirical results confirm their significant positive impacts: tax incentives cut R&D costs; government funding offsets market failures; R&D investments strengthen independent innovation capability. Stable variable trends verify the robustness of the result. This study enriches the literature, provides implications for policymakers and managers, and proposes future research directions.
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Copyright (c) 2026 Li Tian, Nadiah Abd Hamid, Ida Suriya Ismail
This work is licensed under a Creative Commons Attribution 4.0 International License.
