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Strategic R&D Subsidy Effect and Perfection of China’s Policy

Author: LiuFeiYue
Tutor: ZhangYaBin
School: Hunan University
Course: International Trade
Keywords: Strategic Trade Policy R&D subsidy Gambling Model Technological innovation
CLC: F273.1
Type: Master's thesis
Year: 2008
Downloads: 134
Quote: 0
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Abstract


In the process of world economics integration and science and technology’s globalization, the technological innovation is acting more and more vital role in the national competition and the economic growth. R&D is source of technological innovation, strategic R&D investment play a key role in enhancing the national technical competitive power and upgrading enterprise strength. Governments are widely use financial allocation, tax incentives and other means, carrying on the subsidization to the research and development enterprise, strategic R & D subsidy are becoming an important policy’s mean of world’s intervention in economic activities, which aims to enhance the competitiveness of enterprises and further strengthen the country’s dominant industries, support for vulnerable industries, in order to promote the country’s export trade and economic growth.First of all, this article from three aspects including the necessity of the government’s strategic R&D subsidy policy’s implementation, strategic R&D subsidy of WTO rule, as well as the applicability the strategic R &D subsidies on our country to analyze the reasons of government strategic R&D subsidy policy’s implementation.In theory analysis, the article based on the idea of strategic trade policies, and utilize gambling model to analyze the strategic R&D subsidy’s function of driving business R&D levels, improving product competitiveness, changing the pattern of trade competitiveness and enhancing country’s welfare, Theoretically in answer to Chinese government under the current situation should how to properly formulate trade policies, needs to implement what kind of trade policy to protect and to support our country industry’s development.At the same time, after theoretical analysis, article take our country’s automobile industry as the example, use "correction" model for carrying on the empirical analysis to the strategic R&D subsidy policy. The empirical results show that the strategic R&D subsidy policy has the shift profit strategic function, can better national welfare.Finally, the article bases on our country’s strategic R&D subsidy activity at present, then analyze reasons of Japanese and USA’s technical success, absorb international experience and propose many operational countermeasures and suggestions to the strategic R&D subsidy policy adjustment after our country join in WTO.

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