R&D Deduction Intensity, Entrepreneurship and Total Factor Productivity of Firms

Abstract

This paper selects A-share listed manufacturing companies from 2016 to 2022 for analysis, and uses the data to investigate the interrelationships among three dimensions: the strength of R&D add-on deduction, entrepreneurship, and total factor productivity of firms. The aim is to explain the policy implementation effects of China's R&D add-on deduction policy since the 1990s. This paper examines the significant effect of the strength of the add-on deduction policy on enhancing the total factor productivity of firms and the positive moderating role of entrepreneurship in the impact of the strength of R&D add-on deduction on the total factor productivity of firms. The purpose of this paper is to provide a realistic basis for the national policy of optimizing R&D cost-added deduction to promote high-quality development of China's listed manufacturing industry.