Preferential tax policy and R&D personnel flow for technological innovation efficiency of China's high-tech industry in an emerging economy

• DOI: 10.1016/j.techfore.2021.121228
• Publication Date: 2021-09-27T06:16:05Z
• Authors: Qunchao Wan; Jin Chen; Zhu Yao; Ling Yuan
• Keywords: Tax Policy; Tobit model

Abstract As an emerging economy, the two-phase innovation inefficiency of China's hi-tech industry caused by a preferential tax policy should be addressed. Using the SAR Tobit econometric model and the panel data from China's 30 regional hi-tech industries covering 2004–2016, this paper investigates the main effect, masking effect and moderating effect of preferential tax policy on the two-phase innovation efficiency of China's hi-tech industries. We find that the RD in the business transformation stage, the positive indirect effect of R&D personnel flow weakens the negative direct effect of the preferential tax policy, which is manifested as an obvious masking effect. The research results provide a reference for the scientific formulation of national tax preferential policies, the design of innovative talent flow policies and the promotion strategies of innovation efficiency of hi-tech industries.