Top Management Team Characteristics,Salary Level And R&D Investment

Innovation plays an important role in competition among enterprises, Improving the technical innovation capability can enhance the core competitiveness of enterprises, and promote economic growth.In2006, the Chinese government promulgated the "Long-term Science and Technological Development (2006-2020)", and proposed to spend15years to make our country into an innovative country. Theoretically, the cognitive abilities of top managers have a direct impact on strategic decisions, while top managers, educational background and other characteristics are decisive factors of the formation of their cognitive ability and value orientation (Hambrick&Manson,1984), which will affect the enterprises’ innovative policy.Because most researches from home and abroad on the top management team are the studies of the relations between top management team’s characteristics and corporate performance. However, Few literatures are about the relations between top management team’s characteristics and e innovative strategy. Therefore, doing research on the relations between top management team’s characteristics and enterprises’R&D investment decisions can play an important role to improve enterprise’s innovative intensity. This paper studies the relations among top management team’s general population characteristics, heterogeneity, salary level and R&D investment of innovative enterprises in china, in order to know about the difference in the complicated social and political environment between China and the west. Then, the results can provide references for enterprises to make a high-effective top management team, and improve the incentives effect.The top management team’s characteristics include eight features:age, education, tenure, professional background, age heterogeneity, educational heterogeneity, tenure and professional background heterogeneity. Salary level is the monetary compensation. The empirical results show that the relations are as follows:The educational level, the length of tenure and technical background have significantly positive correlations with R&D investment. Age heterogeneity and professional background heterogeneity also have significantly positive relation with R&D investment. However, educational heterogeneity and tenure heterogeneity have a weak positive correlation with R&D investment. Age have a significant negative correlation with R&D intensity.