Research on the Effects of Public R&D Subsidies,Influencing Factors and Choices of Objects

With development of industrialization,the mode of RD and structure of RD spending will change,during that progress the role of government is very important.With panel data and TSLS and from the respective of increasing RD investment of enterprises,the paper studies the effects of public RD subsidies and its influencing factors,and the paper also studies the influence of RD subsidies objects choices on the effects of public RD subsidies.The results show that the effects of public RD investment are influenced by stages of industrialization and the choices of public RD subsidies objects.The effect of public RD investment in enterprises on RD investment from enterprises is strongly positive,and the effect becomes stronger and stronger with the enhancement of industrialization.Public RD investment in research institutions has a negative impact on corporate RD investment,however,the impact of public RD investment in universities on firm RD investment is positive.As a whole,the effect of public RD subsidies in China on RD investment of enterprises is positive,however,the effect fades because of governments' preference to research institutions.The rate of government subsidy is about 4.6%,which is very low.Availability of funds has significantly positive impacts.Finally,the paper presents some related explanations and relevant policy recommendations.