Fiscal Incentives and the Cultivation of New Productive Forces under Regional Differentiation

DOI: https://doi.org/10.62517/jse.202611102

Author(s)

Hongliang Chen*

Affiliation(s)

Nanning Normal University (NNNU), Nanning, Guangxi, China *Corresponding Author

Abstract

New productive forces, characterized by technological innovation, factor reallocation, and industrial upgrading, have become a key driver of high-quality economic development. Their cultivation plays a critical role in improving the modern industrial system and fostering new growth momentum. Given the pronounced heterogeneity in regional development foundations, industrial structures, and innovation capacities, the formation of new productive forces requires development paths that are closely aligned with local conditions. Fiscal incentives, as an essential instrument of public economic governance, exert significant influence on innovation activities, capital allocation, talent mobility, and the stability of industrial and supply chains. Through mechanisms such as fiscal subsidies, tax incentives, and expenditure optimization, fiscal instruments can guide resources toward regionally advantageous sectors and mitigate the inefficiencies arising from homogeneous development strategies. However, in practice, the effectiveness of fiscal incentives is constrained by issues including insufficient precision, incentives homogenization, mounting local fiscal pressure, and low efficiency in fund utilization. This paper systematically analyzes the internal mechanisms through which fiscal incentives promote the cultivation of new productive forces under regional differentiation. It further identifies key challenges in current implementation and proposes targeted optimization paths aimed at improving incentive accuracy, strengthening differentiated support, enhancing fiscal sustainability, and increasing governance efficiency. The study provides a theoretical framework and practical reference for promoting the coordinated and sustainable development of new productive forces across regions.

Keywords

New Productive Forces; Regional Differentiation; Fiscal Incentives; Industrial Upgrading; High-Quality Development

References

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