Abstract
The current round of COVID-19 has increased the uncertainty of the economic environment, which may have an impact on government policies and enterprise innovation. Therefore, this paper tries to analyze the impact of government subsidies on enterprise innovation behavior under different business circles. According to the empirical results of a-share listed companies from 2017 to 2019, government subsidies play a significant positive influence on enterprise innovation behavior, and the business cycle plays a counter-cyclical role in the relationship between government subsidies and enterprise innovation behavior. That is, in the period of economic prosperity, the business cycle negatively adjusts the relationship between government subsidies and enterprise innovation. During the economic depression, the business cycle positively regulates the relationship between government subsidies and enterprise innovation. The grouped test shows that the above effects are concentrated in the enterprises located in the eastern region, while in the enterprises located in the non-eastern region, the influence of government subsidies on enterprise innovation does not change significantly in the fluctuation of business cycle. In this paper, the conclusion shows that it is necessary for government departments to attach great importance to the influence of business cycle on enterprise innovation behavior and formulate more targeted fiscal policies.
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