Author(s)

Yiqi He ¹, Zhihui Li ¹, Wenhong Yan ²

Affiliation(s)

¹ School of Accounting, Nanjing University of Finance and Economics, Nanjing, 210023, China
² School of Public Finance and Taxation, Nanjing University of Finance and Economics, Nanjing, 210023, China

Corresponding Author

Wenhong Yan

ABSTRACT

Government interventions, especially tax incentives, are vital to corporate innovation. However, is the effect of tax incentives heterogeneous across different types of innovation? Do tax incentives affect innovation differently in different business environments? This study approaches these questions empirically using data from China's listed companies from 2010 to 2020, analyzes the effect of tax incentives on enterprises' exploratory and developmental innovation, and discusses the impact of the business environment on such a relationship. The results suggest that tax incentives can promote exploratory innovation and developmental innovation, and have a greater impact on developmental innovation, and a good business environment strengthens this role.

KEYWORDS

Tax incentives, Enterprise innovation, Exploratory innovation, Developmental innovation, Business environment

CITE THIS PAPER

Yiqi He, Zhihui Li, Wenhong Yan, The Heterogenous Effect of Tax Incentives on Different Types of Enterprise Innovation: Evidence from China. Information Systems and Economics (2024) Vol. 5: 94-99. DOI: http://dx.doi.org/10.23977/infse.2024.050313.

REFERENCES

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