On the information industry based on innovation and enhance the ability of fiscal policy analysis

[Abstract] the traditional view is that enterprise itself, the lack of technological Innovation the driving force due to not fully enjoy their own return on investment, government fiscal policy can be as a major stimulus to make up for lack of motivation, and be able to play a greater role. in promoting the development of Information Industry is not only feasible but also necessary, so our country can through the rationalization of institutional arrangements and policies to improve these key factors of China's independent Innovation capability.

[Keywords:] government; fiscal policy; Innovation; Information Industry

A government R & D through tax policy incentives theoretical analysis.

Enterprise is the main pursuit of profit maximization in a market economy, the determinants of business investment is expected to return on investment, R & D investments if the expected returns than other investments, the company will automatically tend to the investment , otherwise not. R & D investment, a notable feature is it has positive externalities, positive externalities so that investors can not fully be brought about by its own R & D investment of all income, even in quite comprehensive intellectual property protection Economic environment, the time limit will be due to patent protection and other forms of knowledge spillovers leading to the private rate of return on investment than on the whole, the social rate of return, which means that the level of private R & D investment is lower than socially optimal level of . Jones and Williams (1998) believes that a conservative estimate would be socially optimal R & D investment is the actual investment of 2 to 4 times, so in terms of today's developed and developing countries, through the implementation of fiscal policy to stimulate R & D investment community is an inevitable choice for governments.

Generally speaking, the government or the use of fiscal policy to stimulate the community to improve R & D investment mainly from two aspects. One is the demand side, that is, R & D activities through direct financial subsidies or tax incentives reduce the cost of R & D and make up companies do not fully get the benefits of these measures in the capital market imperfections in developing countries relatively more will be more effective, because the sound in the capital market is not the case, first of all, the lack of adequate venture capital to join the company can not external financing, share the risk, large enterprises can turn to internal financing by way of conducting R & D, SMEs will be because of the lack of venture capital to join and can not afford high-risk R & D investment; Secondly, due to imperfect capital markets more moral hazard is more severe, making the company a higher cost of financing for R & D, thus reducing the R & D investment. When the government through the implementation of fiscal policy to participate in social development activities, which will greatly improve the shortage of R & D, thus promoting technical progress and Economic growth; finally the supply side, the government can play a financial strength, by increasing public spending on education, especially high-tech training is to increase the supply of more social spending so as to scientists and engineers Obviously, in the same R & D intensity, has more scientific Research on the social scientific and technological Innovation will increase the efficiency and output, and thus stimulate more Research and development activities.

In fact, the demand and supply both from the start of the effect of fiscal policy at different levels of Economic development, different market environments and different industries are not the same, because the impact of Innovation policies in addition to the factors addition, there are many, such as Economic openness, market structure, business size and extent of intellectual property protection, and these factors play a common role, so the analysis of the effectiveness of fiscal incentives need to take into account Industry specific internal and external environment This article analyzes the promotion of independent innovation of China's Information Industry, various fiscal incentives policy choices.

2 the use of fiscal policy to promote independent innovation of China's Information Industry, the need for
First, the Information industry is a strategic industry for China's Economic development. The whole of society of information Technology is a key Technology industries versatility, strong penetration of its development has attracted world attention and support our country is speed up the industrialization process in the critical period, to develop the information industry, the transformation of traditional industries, and promote other sectors of society as a whole innovation and improve labor productivity is of great significance. continuously improve our capability of independent innovation of information industry, the national implementation information Technology strategy, using information Technology to stimulate industrialization, new path of industrialization based and premise.

Second, China's information industry big but not strong, independent innovation capability is weak. 30 years of reform and opening up, China's electronic information industry has experienced its infancy, creating stage, into the current stage of rapid development. From 2004 to 2008, China's electronic information industry revenues more than doubled, growing from 3.1 trillion yuan to 7.1 trillion yuan, annual growth rate of 24.8% of China's electronic information industry has become the fastest growing industry , a pillar of national economic development and leading industry.

Although China's information industry has achieved rapid development, there have been a number of companies with strong innovation ability, but on the whole, China's inadequate investment in R & D capacity for independent innovation is weak by the following table can be seen, our office , accounting, and computer manufacturing and radio, television and communication equipment manufacturing R & D intensity (R & D investment and industrial growth with the value measured by the ratio between) is not only far lower than developed countries is far lower than some newly industrialized countries.

Through this comparison can be found, China's information industry R & D investment, innovation and R & D investment is the fundamental guarantee, the Government should adopt a variety of fiscal policy to improve the R & D investment.

Again, with the rapid development of global information Technology and the degree of internationalization of China's information industry continues to increase, more intense international competition, China's information industry is facing both internal and external pressures: on the one hand, although China has become the world's electronic information product manufacturing base, but our information products is not high tech, not in a lot of proprietary core technology, especially in integrated circuits, software, components and other core technologies, R & D capabilities are very weak, which led to China is still In the bottom of the entire industry value chain, the lower value-added products; the other hand, developed countries and multinational corporations or through the development of higher technical standards and technical barriers set up more to strengthen the control of information technology, or by China's domestic large number of patent applications to capture our market, our local enterprises to increase the difficulty of technological innovation, China's information industry to prevent further access to international markets. In sum, only through increased R & D investment to improve independent innovation capabilities, in order to make China's information industry achieve competitive advantage, really China's information industry bigger and stronger.

3 to improve the ability of independent innovation of China's information industry's tax policy choices
3.1 full play the guiding role of government, increase the financial support of major industrial projects
As the foundation for the development of information technology in China is relatively weak, the information industry, technological innovation has been the natural choice of the introduction, digestion, absorption, re-innovation model, although active in the implementation of technological innovation and mechanism innovation, technology innovation and continuous improvement in the level of and the individual areas has reached world advanced level, but on the whole did not deal with the introduction, absorption, and then the relationship between innovation, technology absorption efficiency is relatively low in most of the core technology developed with advanced technology and a great the gap from the foreign information technology innovation to improve the process, whether it is the most innovative American technology, or implementation of technology to catch up with Korea, with information technology as the representative of the rapid development of high-tech industries, are inseparable from the Government a number of major strategic significance of the core technology and overall arrangement of administrative intervention, so that the adoption of state financial support for China's information industry development of the strategic position of the core technology Research, to gain their own core competencies and improve industry's capacity for independent innovation. Links to free download http://www.hi138.com 3.2 increase the technological innovation of direct financial investment
Related statistics show that from 1995 to 2008, China's electronic and communication equipment manufacturing science and technology activities are funded by the Government to raise the average ratio was 4.4%, the average ratio of companies to raise 85% through the financial institutions to raise the average ratio is about 10.5 %; computer and office equipment manufacturing science and technology activities are funded by government, business and financial institutions to raise the average rates were 2.9%, 88.8% and 8.2%, which shows China's electronic information product manufacturing science and technology activities funded primarily by corporate raise their own by the Government to raise the number of very limited, and in China's information industry overall R & D investment and other financing channels, the case of poor, increase government's direct investment and innovation activities to support efforts to improve the information industry capability of independent innovation and effective measures.

3.3 through the development of a variety of tax incentives to encourage business innovation
With the government through direct expenditure to increase R & D investment in a business through tax incentives to encourage non-independent Research and development will play exactly the same effect. First of all, in theory, the government has increased investment in R & D may be directly and produce complementary R & D investment, which is to play the role to promote private R & D investment, but in some cases may have crowding-out effect, thus increasing the overall R & D investment is not obvious, but the tax credits directly reduce the incentives corporate Research and development activities, costs and risks, thereby increasing the company's R & D investment. Second, the tax incentives may be more conducive to business-oriented innovation system established in the development of specific tax policy on the one hand, according to the company new product development, new technology research and development, technology transfer and other scientific and technological activities to develop the appropriate tax expense deductible on the other hand to optimize the tax system to improve the operability of tax policy, and technology innovations to distinguish between the nature of , especially for wide application of information technology to give greater support to improve the ability of independent innovation of information industry and also indirectly promote the application of information technology.

3.4 for the enterprise through tax policy to create conditions for financing innovation
Contains most of the information industry sector belong to high-tech industries, high-tech industry is characterized by more opportunities for innovation, and because of the high-end technology and technical updating and quickness led to greater risk of its R & D, Therefore, through the financial markets information industry research and development financing more difficult. While the Government can formulate discount loans through financial incentives, but also by policy banks to provide financial support for R & D projects; the other hand, can encourage and promote the formation of venture capital funds, so as to promote private capital investment in R & D support.

3.5 to increase the quality of the information technology industry, financial investment in training
Talent is the fundamental guarantee to improve the ability of independent innovation, enhance scientific and technological innovation is the decisive factor. LEiponen (2005) study suggests that, in the control under the conditions of R & D intensity, technical innovation, labor input and output of a positive correlation between, and Colombo and Grilli (2005) study found that high-tech business development, the Government of highly specialized human capital investment than other forms of education spending more efficient. for China's information industry is the lack of specialized human capital and personnel structure unreasonable conditions, the Government must increase the supply of highly qualified technical personnel point of view of financial investment, to further improve the incentive mechanism to stimulate technological innovation, and fully mobilize the enthusiasm of all kinds of talents to create excellent environment for the growth of talent, accelerate the construction of high-quality technical personnel and various types of innovative talent for the information industry to provide personnel protection and intellectual support.

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