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Do Tax Credits Stimulate R&D Spending

As an important policy instrument to effectively intervene and stimulate the R&D investment of enterprises, tax incentives have been used by more and more countries and have strong evidence of theory and practice. The study found that the preferential tax policies of the state and the R&D investment of small and high-tech enterprises did not achieve the expected incentive effect, which is consistent with the conclusions derived from the mathematical model. Finally, a brief summary and relevant policy Suggestions are presented.