China Economic Network, Beijing, March 8 (Reporter Song Yajing) "Since the implementation of the preferential policy for the addition and deduction of research and development expenses, it has played a positive role in promoting the development of enterprises. It is recommended that relevant national departments increase their support and increase the proportion of the addition and deduction of research and development expenses to 150% or deduct income tax at the proportion of 25% of research and development expenses, further reducing the cost of enterprise innovation and stimulating the enthusiasm of enterprises for independent innovation.", Lu Qingguo, Chairman and General Manager of Chenguang Biotechnology Group, told China Economic Network.

Lu Qingguo, deputy to the National People's Congress, chairman and general manager of Chenguang Biotechnology Group. (Provided by the interviewee)

Scientific and technological innovation is a strategic support for promoting high-quality development and building a modern economic power, and is a key factor in winning international competition. In recent years, countries have been continuously improving, adjusting, and reforming relevant policies to stimulate the vitality of technological innovation in enterprises, thereby improving international competitiveness and promoting economic growth. As the head of a biotechnology enterprise, Lu Qingguo has long been concerned about innovation. He believes that since the implementation of the preferential policy of R&D expenses plus deduction, it has played a positive role in promoting enterprises to increase R&D investment and accelerate the upgrading of industrial structure.

He said, "In order to stimulate enterprise innovation and promote enterprises to increase investment in research and development, the country has issued a series of policies, and has achieved significant results." Among them, the R&D expense deduction policy is an important measure to stimulate enterprise technological innovation in China, and it is also the main way to provide indirect financial input to research and development activities. "The 14th Five Year Plan for National Economic and Social Development of the People's Republic of China and the Outline of the 2035 Long Term Goals" proposes to encourage enterprises to increase investment in research and development, and implement more inclusive policies such as R&D expense deduction and tax incentives for high-tech enterprises. In 2021, the proportion of R&D expenses plus deductions for manufacturing enterprises will increase from 75% to 100%; In 2022, the proportion of R&D expenses plus deductions for small and medium-sized high-tech enterprises will increase from 75% to 100%.

He believes that since the implementation of the preferential policy of adding and deducting research and development expenses, it has played a positive role in promoting enterprises to increase research and development investment and accelerate the upgrading of industrial structure. However, compared with developed countries, China's efforts to support technological innovation in enterprises are relatively small, and the climate for technological innovation in China should be stronger.

To this end, the representative of Lu Qingguo suggested that relevant national departments increase support for enterprise research and development investment, increase the proportion of R&D expenses to 150% or deduct income tax at the proportion of 25% of R&D expenses, further reduce enterprise innovation costs, stimulate enterprise independent innovation enthusiasm, create an atmosphere for enterprises to compete for innovation, and encourage enterprises to actively increase R&D investment and actively innovate, So as to continuously enhance the advantages of Chinese enterprises in international competition.