Tax incentives and corporate innovation behavior

Amid the intensification of the implementation of innovation-driven development strategy, optimizing tax incentives to precisely stimulate corporate innovation is still necessary. Through the data of Chinese listed companies from 2011 to 2024, The purpose of this study is to investigate the effects and strategically moderate for substantively innovating on those policies. Empirically, they have prompted both innovation, however from that of inducive, the relation to strategic innovation is more pronounced. Moderation tests present us with a clearer picture, as one can predict that external innovation environment and the intensity of executive innovation commitment together, as in when firm and relevant, can greatly enhance the policies incentive effect on substantive innovation yet they do not positively moderate for a policy incentive effect on strategic innovation. Further inquires show that the tax incentives help make breakthroughs in key core technologies and that such contingency has also been found to be conducive to the breakthroughs and only substantive innovations have been found to be tangible additions to market value and productivity. These findings give more specific angel of view towards policy-triggered micro innovation and forms a empirical base to the improvement of the tax policy system under the pace of the protection of technological independence.