Entrepreneurship New Findings

Entrepreneurship Innovation is a kind of new ideas of production factors, is the process by which individuals and organizations generate new idea and put them into practice. Tax policy is one among major fiscal policies. In a specific industry such as construction material industry, on the one hand, using tax policy with a decrease or increase in tax rate could affect tax revenues, profit after tax, demand, the allocation of economic resources and financial results and compensation and jobs of the industry. Beside, using tax policies and rules could affect the excessive using of leverage or debt, as well as the number of financial transactions in businesses and the economy. In the case of decreasing tax rate, the market and companies can receive more benefits such as generating more jobs and compensation, but the government budget can have deficit and the government has to cut expenses. Changes in tax rates can have both positive and negative impacts on the local market (Changing Tax Rates Impacts on the Risk Level of Vietnam Construction Material Firms - Dinh Tran Ngoc Huy) Corporate innovation input mainly includes capital and personnel. From the aspect of innovation input, innovation policy should provide capital and personnel support to corporate innovation. Capital is the biggest bottleneck and obstacles for most enterprises to engaged in innovation and R&D activities, so government should provide subsidies or funding for corporate innovation and R&D activities. In fact a lot of innovation policies implemented in many countries can be classified into this category, including fiscal subsidy, financing policy and preferential tax policy, etc. (Innovation Policy and Corporate R&D - Robert P McGowan and Kai Hu)

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Last date updated on April, 2024