Impact of Financial and Tax Policies on Business Innovation in China: A Focus on the Role of Business Environment

The financial and tax policies have been widely used by various levels of government in China to incentivize business innovation and research and development. However, their effectiveness varies with the business environment in different regions. As a result, creating a favorable business environment has gradually become a priority for governments at all levels. The academic community has also conducted a series of research studies on this topic. However, there is still no consensus on the effectiveness of innovative incentives provided by financial and tax policies and whether this effectiveness is constrained by the business environment.