The Effect Of Process Of Marketization On Technological Innovation Of Enterprises Under The Different Characteristics Of Property Rights

Since the reform and opening up, China has carried out economic reforms in transitioncharacterized by reshaping property rights and marketization basically. The problem of lackingtechnological innovation is appearing. Now China is in the critical period of”12th Five-Year”,to improve the capacity of technological innovation and the innovation-driven transformationof economic growth mode have been risen to national strategies. Because R&D investment hasthe characteristics of high uncertainty and public goods, in order to improve the predictabilityof the results of R&D investment and stimulate enterprises to invest in technologicalinnovation consciously and continuously, it needs a favorable market environmentobjectively.Technological innovation of enterprises as the main way to improve thecompetitiveness of the national technological innovation depends on the incentives of theprocess of marketization for technological innovation. Based on the perspective ofcharacteristic of property rights, it studies the impact of process of marketization ontechnological innovation. Besides it also studies process of marketization and value effect ofR&D investment.At the beginning of the paper, it introduces the research background, study objectives,methods and innovation. It looks back on the related theories of the process of marketization,technological innovation, property rights and corporate value, and explains the meaning ofmarketization and technological innovation. That is the theory foreshadowing for this study.Then it analyzes the process of marketization of China and current situation of enterprisetechnological innovation. After that, hypotheses are put forward and research is designed. Inthe following, it makes use of the accounting data of high-tech listed companies during2007 to2009as study sample to do tests and analysis. The empirical study finds that the incentivesof process of marketization for R&D investment are not obvious. The effect of process ofmarketization on technological innovation and process of marketization and value effect ofR&D investment are different because of the characteristics of different property rights.Finally, it presents recommendations and research prospects.The innovation can be summarized as the following: First, it draws on the results ofprevious analysis, and takes national high-tech listed companies as sample to study the processof marketization, technological innovation and value effect of R&D investment. R&Dinvestment and its value effect are included in the analysis framework from the level of marketenvironment. Second, the national high-tech listed companies are grouped in accordance withthe characteristics of property rights, divided into state-owned enterprises and non-state-ownedenterprises. The divide is to test the effect of process of marketization on technologicalinnovation in the two groups. Besides the divide is to test if process of marketization and valueeffect of R&D investment is different from one group to another.