Impact of Business Environment on Fiscal and Tax Incentives for Corporate R&D: Evidence from China

The financial and tax policies have been widely used by governments at all levels in China to incentivize business innovation, but their effectiveness varies with the business environment in different regions. The construction of a business-friendly environment has gradually become a focus of governments at all levels, and academia has also conducted a series of research on this issue. However, there is still no consensus on the effectiveness of innovative incentives in financial and tax policies and whether this effectiveness is constrained by the business environment.