The measure of government R&amp;D tax incentive intensity and its effect verification in China

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Science Research Management ›› 2011, Vol. 32 ›› Issue (9) : 157-164.

The measure of government R&D tax incentive intensity and its effect verification in China

Wang Jun

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Abstract

The government R&D tax incentive intensity in China is calculated using METC, B index, and R&D cost. The outputs reveal that Chinese R&D tax incentive intensity lies in the middle class compared with major countries in the world. It is found that the impact of R&D tax incentive on enterprise R&D expenditure is significant after empirical verification using manufacturing industries data during the period of 1995-2008 in China. The incentive effects for high-tech enterprises are more significant. Policy implications are that Chinese government should make adjustments on the way of R&D funding, and gradually expand the scope of tax incentives for enterprises in order to reduce the proportion of direct funding by government.

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R&D tax incentive / incentive intensity / impact effect

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Wang Jun. The measure of government R&D tax incentive intensity and its effect verification in China[J]. Science Research Management. 2011, 32(9): 157-164

References

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