Abstract: How to make listed firms increase R & D investment in energy conservation to protect the ecological environment and enhance the product life cycle cost control through institutional arrangements and intrinsic motivation is becoming more and more important today in the case of China’s rapid economic development. Based on the Chinese manufacturing data from 2011 to 2013, this article systematically examines the influence of government pressure and tax preference on the R & D of Chinese local firms. Through the theoretical model, this paper analyzes the mechanism of government pressure and tax preference alone and commonly influences the R&D of Chinese local firms and uses data to test. We find that firms disclosure R&D investment information and R&D intensity are increasing year after year, and that operated in high-tech industries, have higher state ownership, have higher environmental regulation tend to make R&D information disclosure and have a higher level of R&D intensity. However, Pollution bring “crowding-out” effect, those environmentally sensitive industries tend to have lower level of R&D information disclosure and R&D intensity; Tax policy is an important factor in the impact of R & D investment, enterprise income tax incentives bring more R&D investment than added-value tax do; The impact of government pressure on R&D investment is more significant than tax policy.

Key words: Firm R&, D Investment