Tax and Fee Cuts, Investment in Innovation, and High-Quality Development of Equipment Manufacturing Enterprises

Abstract

China’s economy has entered a stage of high-quality development. Cutting taxes and fees is an important policy tool to improve the quality of real economy development and the supply-side structure. Select a-share equipment manufacturing listed enterprises from 2013 to 2020 as the research object, empirically analyze the impact of the overall tax burden of enterprises on high-quality development. Research shows that tax and fee reduction policies can significantly promote high-quality development of enterprises. The mediating effect shows that innovation input plays a partial mediating role in the impact of tax and fee cuts on enterprises’ high-quality development. In other words, tax and fee reduction policies can encourage enterprises to increase investment in innovation and enhance their R&D innovation ability and market competitiveness, thus strengthening their value creation ability and promoting high-quality development of enterprises. IPR protection is adjusting tax and fee reduction and high-quality development of enterprises. In other words, strengthening the protection of intellectual property rights can solve the problem of information and external asymmetry of enterprises, optimize the innovation environment of enterprises, and enhance the promotion effect of tax and fee reduction policies on high-quality development of enterprises. This conclusion clarifies the mechanism of tax reduction and fee reduction policies on high-quality development of enterprises, which is of great significance for improving tax reduction and fee reduction policies, encouraging enterprises to invest in innovation, strengthening intellectual property protection, and promoting high-quality development of equipment manufacturing enterprises.