A Review about the Effects of Government Policies on R&D Investment in Firms

Jie HU, Hao-wen ZHANG


This paper deals with the literature on the effects of government policies on firm R&D investment, and the government policies are divided into two categories: government subsidy policy and government tax incentive policy. In terms of government subsidy policy, scholars remains incentive effect and crowding out effect, these are two different points of view. And on the tax incentive policy, although scholars generally agree with incentive effect, but still find that scholars need to investigate the issue of incentive intensity. In addition, this article analyzes and reviews the literature from scale, ownership, industry, region these four firm heterogeneity factors, and find that most of the scholars just analyze a certain firm heterogeneity factor and few literature synthesize the heterogeneous factors, this also requires further research.


R&D, Incentive effect, Crowding out effect, Government subsidy, Tax incentive


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