The Factors Of Impacting Enterprise Innovation

During the past decade, along with the globalization emerges the sci-tech globalization, with sci-tech recourses being integrated worldwide. Emerging technologies propels the change of technological innovation, with knowledge becoming more important and data and information fading out. As a developing country, China lags far behind in terms of technology. It is a great challenge to employ the strategic opportunity to enhance our technological level and innovative capacity. In the era of knowledge-based economy, social development is based upon innovation. Technological innovation is the key to the technological and economic development in China. The sustainable development in China and the enhancement of competitiveness of Chinese enterprises is increasingly relied upon technological sustainability. The industrial evolution and upgrading, which is propelled by technological innovation instead of investment, is the theme of industrial development in China. Therefore, the theories and practice in respect of technological innovation is drawing much more attention of the government, colleges and universities, research institutes, and enterprises.This essay is divided into six parts as follows.Part one depicts the background of technological innovation and the research methods employed, along with the significance of this essay. It defines the meaning of technological innovation and R & D conducted by enterprises.Part two summarizes the research achievement in respect of technological innovation both in and abroad, and bases this essay thereon.Part three analyzes the status quo of technological innovation in China, and the problems embedded therein, and the factors behind the scene. The factors which may affect technological innovation of enterprises are also examined in this part.Part four designs the research framework. It puts forward a hypothesis in respect of the factors that may affect technological innovation, including the scale of a enterprise, sales volume, profitability, equity structure, ration of IP, ratio of learned workers, ratio of R&D workers, diversification strategy, nature of ownership. Further, a regression model is set up based on the data of listed companies in auto industry in 2009, which is analyzed in terms of SPSS.Part five concludes that the profitability, equity structure, the scale of a company and the ratio of R&D workers greatly affects technological innovation while other factors fail to prove significant correlation.Part six suggests that technological innovation has to emphasized in China, the protection of IP enhanced, the financing of technological innovation strengthened, and the innovative talents cultivated.