| President Xi Jinping’s report delivered at the 19th National Congress of the Communist Party of China proposed to build an innovative country.At the moment when the economy changes from high-speed growth to high-quality development,technological innovation is the strongest force to enhance the value of enterprises and promote economic growth.However,with the development of the economy,China’s demographic dividend is diminishing.At the same time,the costs of production factors are gradually increasing.The original advantages,which manufacturing enterprises rely on to achieve development,is no longer exist.At present,China’s manufacturing enterprises are facing unprecedented challenges,technological innovation has become the key to survival and development of China’s manufacturing enterprises in the future.At present,China is at an important stage in transforming and upgrading of its economic development mode.Innovation can not only establish a comparative advantage for enterprises,but also a new driving force for sustainable economic growth.With increasingly fierce competition in the product market,will companies continue to invest money to innovate? Will companies have the willingness to invest in innovation? Does the company’s region have sufficient protection for intellectual property rights to promote innovation investment? These questions have become hot topics.Although the existing papers have initially discussed how the market competition impacting on the enterprise technology innovation investment,the studies on the relationship between them,especially in the specific and in-depth research under the influence of internal and external corporate governance and the external legal environment are few.Based on the Chinese background,by the stakeholder theory,principal-agent theory,information asymmetry theory and financing priority theory,from three aspects: corporate governance,financing methods and intellectual property protection this paper builds the analysis framework of the market competition effect enterprise innovation investment and provides a more comprehensive analysis of enterprise innovation investment.Based on the sample of China’s Shanghai and Shenzhen A-share listed companies from 2008 to 2017,this paper manually collected related data of intellectual property administrative protection and judicial protection in each province for empirical research.This article consists of eight chapters,the specific arrangements are as follows:Chapter 1,introduction.firstly this chapter discusses the research background and research issues,and then expounds the research contribution of this paper.Finally,summarized the research ideas,research methods and paper structure.Chapter 2,literature review and theoretical basis.Under the influence of internal governance environment,external governance environment and intellectual property protection,this chapter also discussed the impact of competition on enterprise innovation separately.This chapter introduces and summarizes the existing problems,and puts forward the research direction,laid the foundation for the study.Chapter 3,institutional background.Firstly,this chapter introduces Huawei as a case.Secondly,this chapter introduces the institutional background of this research from three aspects: the development of China’s innovation strategy and the status quo of enterprise innovation,the status quo of intellectual property protection system,development status of manufacturing industry,it reflects the political background of China’s enterprise technology innovation and enterprise features,which provided the necessary institutional background for the study of the impact of product market competition on enterprise technology innovation investment.Thirdly,this chapter combs the basic theories,including market process theory,innovation theory,stakeholder theory,principal-agent theory,information asymmetry theory and financing priority order theory,based on these theories,this chapter discusses the impact of product market competition on enterprise innovation.Chapter 4,how Market Competition effect Enterprise Technology Innovation Input.This chapter comprehensively analyzed the impact of product market competition and enterprise technology innovation investment.Secondly,it further examines the impact of technology innovation investment on enterprise competition strategy,namely,cost leadership strategy and differentiation strategy.Finally,it analyzes in different product market competition conditions,the choices of technological innovation investment strategy changes.The empirical research found that:(1)The competition in the manufacturing product market promotes the investment in technological innovation of enterprises.(2)Enterprise technology innovation investment will promote the cost leadership strategy and also the differentiation strategy.(3)The enterprise will increase the enterprise differentiation strategy by increasing the investment in technological innovation of the enterprise whether the competition degree in the market is in the highest nor the lowest level;regardless of how the competition environment of the product market changes,the enterprise will focus on the cost leadership strategy.Chapter 5,the impact of product market competition on corporate innovation investment under the influence of corporate governance.This chapter analyzes the different impacts of competition on innovation investment under the influence of different property rights,different levels of executive incentives,and the proportion of different technical expert directors,and further analyzes the background and equity of the chairman or CEO with technical expertise impacted the competition on innovation investment under the influence of concentration.The empirical research found that:(1)State-owned property rights significantly weakened the positive effect of product market competition on enterprise technology innovation investment.(2)The implementation of executive equity incentives and the promotion of executives’ monetary compensation incentives will promote the competition of strong product market to the R&D investment of enterprises.(3)Increasing the proportion of technical expert directors in the board of directors and the technical expertise of the chairman or CEO can significantly enhance the positive effect of competition on corporate innovation investment.(4)The more concentrated the company’s equity,the more technological innovations are invested in the face of fierce competition.Chapter 6,the impact of product market competition on corporate innovation investment under different financing methods.This chapter analyzes the different impacts of competition on innovation investment under the influence of different financing methods,and further analyzes the specific impact of competition on innovation investment under different industry attributes and different financial levers.The empirical research found that:(1)Both endogenous financing and external financing have a regulatory effect on product market competition to promote enterprise innovation investment.Compared with external financing,the adjustment effect of endogenous financing is greater.(2)Equity financing has a regulatory effect on product market competition to promote enterprise innovation investment.The adjustment effect of debt financing on competition to promote innovation investment is not significant.(3)The higher the internal financing of non-high-tech enterprises in the manufacturing industry,the higher the competition will encourage enterprises to invest more funds in enterprise R&D.High-tech enterprises not only rely on internal financing,but also absorb more outside.Source financing to promote corporate innovation investment.(4)Manufacturing enterprises rely mainly on external financing when the asset-liability ratio is low.When the asset-liability ratio is high,they mainly rely on internal financing to regulate the promotion of competition to innovation.Chapter 7,the impact of product market competition on corporate innovation investment under the influence of intellectual property protection.This chapter analyzes the impact of competition on innovation investment under the influence of intellectual property administrative protection and intellectual property judicial protection,and further analyzes the impact of competition on innovation investment in different regions under the protection of intellectual property rights.The empirical research found that:(1)Intellectual property administrative protection and intellectual property judicial protection have a positive impact on the impact of product market competition on corporate innovation investment.(2)In the eastern region,intellectual property administrative protection and judicial protection have significant effects on competition and innovation.In the northeast,central and western regions,the regulatory role of intellectual property administrative protection and judicial protection is not significant.Chapter 8,Research Conclusions,Recommendations,and Prospects.This chapter first summarizes the research.Secondly,based on the system background of China and the internal and external governance faced by enterprises,it puts forward suggestions for promoting enterprise innovation policy.Finally,it combs the research limitations of this paper and looks into the future research direction.The main contributions of this paper are as follows:Firstly,based on manual collection technical data of technology expertise of directors,chairman and CEO using manufacturing enterprises as the research object,the paper studies the impact of product market competition on corporate innovation investment under the influence of the desire to innovate.In terms of enterprises’ innovation ability,it is different from previous researches mainly from the perspective of financing constraint,this paper discusses the impact of product market competition on corporate innovation investment under different financing methods.This has important reference significance for enterprises to maintain stable and sufficient innovation funds and ensure the steady development of enterprise innovation activities under various circumstances.Secondly,based on the actual situation in China,this paper measures the specific situation of intellectual property administrative protection and judicial protection in each province of China based on the unique data collected manually,and can specifically discuss the impact of product market competition on corporate innovation investment under the influence of intellectual property protection.China is divided into four regions: northeast,east,central and west,and the regulatory role of intellectual property protection in different regions is studied in depth.Thirdly,Different from the previous static research on the impact of product market competition on enterprise innovation,this paper,based on the market process theory,holds that competition is a dynamic process of constantly creating and discovering new knowledge and opportunities.This paper analyzes the mechanism of product market competition influencing enterprise innovation input from the micro level of enterprises,and studies the influence of innovation input on the realization of enterprise competition strategy.Fourthly,this paper considers the impact of market competition on technological innovation of enterprises from the influence of financing,corporate governance and intellectual property protection,and provides empirical evidence of Chinese manufacturing enterprises.Existing literature mainly discusses the impact of these three factors on technological innovation,and in-depth and meticulously influence the innovation investment from the company’s innovation ability,innovation willingness and external legal environment.This is not only the deepening and expansion of the existing research,but also provides important empirical evidence for the country to vigorously promote enterprise technology innovation.Fifthly,from the perspective of competitive strategy selection,the value effect of product market competition on enterprise innovation input is investigated.Based on cost leadership strategy and differentiation strategy,investors and enterprise managers can furtherly understand the mechanism and economic consequences of product market competition affecting input in technological innovation.This empirical research can not only enrich the existing research literature,but also has a good inspiration for the innovation and development of enterprises. |
