The Government To Enterprise’s Incentive Mechanism Research In Strategic Emerging Industry

After the financial crisis, many countries in the world have developed theirrespective direction of strategic emerging industry, to occupy a favorable position inthe next round of economic competition. Considering the situation of our countrygovernment, at2010, the government put energy saving and environmental protection,the next generation of information,high-tech equipment manufacturing,new energyvehicles, new energy, new materials and new pharmaceuticals of biotechnologyindustries as China′s seven strategic emerging industry.At present,There have manyresearch about the strategic emerging industry in industry select、 industrycharacteristics and development.At the same time, The reflection and exploration ofthe fiscal、financial and industrial policy system which fit for strategic emergingindustry are developed positively,but the research on the problem about governmenthow to get effective supervision of enterprise in the process of the development ofstrategic emerging industry.Interests and the objective function between governmentand enterprises are different. Local governments need to consider their own reputationand the level of economic development, reputation include social welfare and otherfactors, enterprises need to consider their own profit maximization, it is objectivelythe main body who promotes the development of strategic emerging industry,is alsorelatively independent. So the overall long-term benefits are likely to be fettered byshort-term bad behavior of corporate. Now the government faces two problems: onemust use the industrial policy to encourage enterprises to work hard; on the other hand,how to set the incentive effectively, and what’s the internal logic of The incentive andconstraint mechanism；therefore, I attempts to construct a theoretical framework toanalyze the internal logic of The incentive and constraint mechanism between thegovernment and enterprises during the development of strategic emerging industryin this article,what’s the relation of the factors. are the factors, what’s the problem weneed to pay attention to? Thus to hope can play a valuable role in the solving of theproblems during the development of strategic emerging industry.This article’s research approach is: first of all,begining with the study on theconnotation of domestic strategic emerging industry and the overseas developmentof domestic strategic emerging industry, then, we will have a description about thepresent situation of incentive and constraint mechanism between the domesticgovernment and enterprises during the development of strategic emergingindustry.designing incentive and constraint mechanism between the domestic government and enterprises with the principal-agent model by using the theory ofinformation economics. solve the model and comes to the conclusion: The level of theenterprise’s effort have Positive correlation with the incentive coefficient designed bygovernment.The level of the enterprise negative effort have negative correlation withthe probability of be discoveried and penalty rate;Incentive coefficient have Positivecorrelation with the probability of be discoveried on the enterprise’s short-termbehavior and the penalty coefficient,In contrast, have negative correlation with thelevel of the enterprise risk aversion; At the same time,penalty coefficient and theprobability of be discoveried about the enterprise’s short-term behavior are negativecorrelation in government enterprise incentive and restraint mechanism, it should bemoderate, to avoid hindering enterprise’s enthusiasm or disturbing the market order.