IMPACT OF TAX INCENTIVES ON TECHNOLOGICAL INNOVATION INPUTS AND OUTPUTS OF MANUFACTURING FIRMS: THE MODERATING EFFECT OF REGIONAL MARKETIZATION

The development of manufacturing enterprises has constantly been a concern for countries globally, and enhancing their technological innovation capability is a top priority. Accordingly, many states have introduced policies to encourage technological innovation of manufacturing enterprises, among which tax incentives play an important role. To explore the relationship between tax incentives and technological innovation, using data of manufacturing companies listed in Shanghai and Shenzhen A-shares from 2008 to 2020, the impact of tax incentives on manufacturing enterprises' technological innovation, and the moderating role of regional marketization degree in the process of influence were empirically examined. Results show that: (1) The government's tax incentives can effectively promote manufacturing enterprises' technological innovation investment. (2) The government's tax incentives can promote the level of technological innovation output of manufacturing enterprises. (3) The moderating effect of regional marketization degree on tax incentives and technological innovation input of manufacturing enterprises is not evident. (4) The degree of regional marketization has a moderating effect on the tax incentives and technological innovation input of manufacturing enterprises. Conclusions provide theoretical support for promoting the development of manufacturing enterprises, enhancing their independent innovation ability, and playing the moderating role of regional marketization.