The Effect Of Fair Income Distribution On The Efficiency Of Technological Innovation In Enterprises

The final realization of national strategic objective of"innovative nation"depends on the enhancement of the enterprise's capabilities for technological innovation. Then, the technological innovation capabilities of enterprises depend not only on the strength of their investments of innovative resources, but also on their technological innovation efficiency. Technological innovation capabilities of China's enterprises are not strong as a whole on account of the relative lack of efficiency on technological innovation in enterprises. This phenomenon is due to the irrational income distribution within the enterprises, which as a major constraint to the efficiency of technological innovation in our enterprises. So, this paper focuses on the studies of impacts that the fair income distribution has on the efficiency of technological innovation in enterprises. This has very important theoretical and practical significance. In the processes of technological innovation activities, lots of stakeholders are involved in, at different stages and sectors. Their economic behaviors directly affect the technological innovation efficiency and effectiveness of enterprises. Under the assumption of rational economic man, the people's inherent power engaged in economic activities comes from their pursuing for interests. When the economic benefits they received are inconsistent with they efforts, their enthusiasm engaged in economic activities will be affected negatively. Fair income distribution in enterprises affects the technological innovation efficiency of resources allocation and production through its impacts to the innovation behaviors of every participants. Property rights arrangement is the nature of income distribution system within the enterprises. The unfair income distribution of the enterprises comes from an unreasonable property rights arrangement. The income distribution system under single physical-capital property represents unfair polarized distribution, that prevents the enhancement of technological innovation efficiency in enterprises. The income distribution system under single state-owned physical-capital property represents egalitarian distribution unfairly, which also prevents the enhancement of technological innovation efficiency in enterprises. The income distribution system under single joint property rights of labors represents egalitarian distribution unfairly too, which prevents the enhancement of technological innovation efficiency in enterprises. On the contrary, the united property right that integrates the interests of factors of commonwealth and labors of commonwealth enhances the enterprises technological innovation efficiency and promotes fair income distribution in the enterprises. The united property rights are the evolution directions and universal forms of the modern enterprise property rights system. For this reason, Chinese enterprises have to change their current ideas of distribution and establish the united property rights system which combined the property rights of commonwealth factors and the property rights of the commonwealth labors, so that the non-physical capital owners, especially human capital owners, will be able to participate in the distribution of the cooperative net surplus of enterprises, in order to promoting the benefits of technological innovation common-shared. The enterprises should insiste the natural combination of equity and efficiency, keep inra-firm income gap within reasonable and effective range, and achieve inherent unification of equity and efficiency. The enterprises should also develope a multilateral governance model of "the internal governance as a key method, the external governance as a supplement, and pay attention on the government regulation", and improve the external competitive market environments at the same time.