An Empirical Study on the Impact of Public Expenditure Policies on Enterprise R&D Expenditure

There is no consistent conclusion whether public expenditure has complementary effect or crowding-out effect on enterprise RD expenditure. Using time series data from 1998 to 2009 and a linear regression model,it put forward the hypothesis from the macro level of the country,and studied the effect of public expenditure and financial allocation on the enterprise RD expenditure. The conclusions are as follows: both government RD expenditure and direct financial allocation have positive impacts on enterprise RD expenditure; compared to direct financial allocation,government RD expenditure has more significant impact on enterprise RD expenditure from the macro level of China;public expenditure policies have no significant effect on next year's enterprise RD expenditure.