Research on the impact and action path of tax incentives on the green technology innovation capabilities of small and micro enterprises

Abstract

enterprises in green technology innovation has become particularly important, as it is directly related to the environmentally friendly transformation and sustainable development of society. In this context, tax incentives, as a key tool for the government to promote enterprise technological innovation, play a vital role in motivating small and micro enterprises to invest in green technology research and development. This study deeply analyzes how tax incentives can stimulate green innovation activities of small and micro enterprises by reducing the financial burden of R&D and improving the expected return on investment. The article first outlines the role of small and micro enterprises in global environmental governance and the background of tax incentives. Then, by constructing a theoretical framework, it discusses in detail the direct and indirect effects of tax incentives on green technology innovation of small and micro enterprises. The direct effect is reflected in reducing R&D costs, enabling enterprises to invest more resources in the development of green technologies; while the indirect effect is reflected in improving the long-term investment environment of enterprises, promoting cooperation between enterprises and scientific research institutions, and enhancing the market orientation and application prospects of R&D. In addition, this paper also points out the challenges that may be encountered in the implementation of tax incentives, such as unclear policy objectives and imprecise implementation details, and puts forward corresponding optimization suggestions. Finally, it is emphasized that when designing and implementing tax preferential policies, more attention should be paid to the operability and effectiveness evaluation of the policies to ensure that they effectively promote green technology innovation of small and micro enterprises.