Government Intervention, External Investment And Business Independent Innovation Under The Signaling Perspective

Independent innovation is the core and key of business development. Emergingcompanies as the most important traction lead future economic development, itsindependent innovation of enterprises facing external financing constraints and weakcapacity of independent innovation the two bottlenecks. Market forces alone aredifficult to resolve the urgent need for government to guide and inspire. Governmentintervention directly reflects the state of innovation in planning and guiding direction,passing a national focus on the development of the strategic direction of the industryand government policies tend to signal. This signal helps to attract increased externalinvestment and solve problems of business financing constraints; enabling creativeenergy of the whole society fully gushed out, and promotes innovation. Therefore,straegic emerging industries listed companies, for example, government interventionresearch, signal transduction mechanisms and effects of external investment andinnovation among enterprises, and innovation for solving business problems andfinancing constraints have important theoretical and practical significance.Based on signaling theory, combined with government intervention theory, thetheory of independent innovation, the behavior of the government and its state ofequilibrium, outside investors and enterprises are analyzed. Study on the microscopicmechanism of signal transmission of government intervention, the external effects ofinvestment and enterprise independent innovation, then built the conceptual modeland the corresponding empirical proposition. Panel factor analysis and DEA-BCCmodel was used to measure the variables of government intervention and businessinnovation. The independent innovation process is divided into innovation inputs,innovation outputs and final outputs respectively. Used fixed effects model, thenegative binomial model and the DEA-Tobit model to analyze the signal pass-througheffect of government intervention and foreign investment in the three phases.Constructs simultaneous equations model propositions and assumptions of causalitybetween variables tested. On this basis, the proposed government-led financingconstraint solving, promote strategic emerging policy implications to improve thecapability of independent innovation. The results show that the process of signaltransduction in the government, the government is committed to infrastructure development and commitment to innovation within the jurisdiction of the governmentwill choose to implement high corporate intervention, while companies will choose toimplement innovative development activities outside investors to participate in thefinal equilibrium structures have a significant impact; government intervention andinnovation investment, innovation output showed a "inverted U-shaped " relationship,and in the final output stage does not work; external investment has a different impacton the role of innovation in the enterprise in three stages; order to ease financingconstraints strategic emerging industries, does not completely follow the peckingorder theory of financing.The innovation of this paper is: First, constructed a signaling game modelbetween the government, outside investors and corporate; Second, build signalingtransmission conceptual model through study on the signaling mechanism betweenthe government intervention, external investment and enterprise indepengdentinnovation in strategic emerging industries; Third, construct simultaneous equationsmodel to test the signaling transmission effet between government intervention,externa investment in enterprise indepengdent innovation process, as the enterpriseindepengdent innovation process was seen as a loop system.