Political Connection, Rent-seeking Activities In High Tech Certification And Enterprise Innovation

Under the background of China’s transitional economy, high-tech enterprise, which is an important force in promoting national scientific and technological progress and economic growth, has become China’s industrial restructuring. The technological and innovative activities of enterprise are running in an open environment, where social relation is one of the conducted numerous political ties that cannot be ignored.Establishing links between business and government to seek government protection in order to obtain more resources in favor of technological innovation is conducive to the development of enterprises. Rent-seeking behavior of the enterprise itself may be beneficial in the short term, but the long-term development of society is detrimental. As it causes distortions and confusion in resource allocation, and also prevents the occurrence of more efficient production methods and development, we should try to avoid this behavior.Then the paper puts three hypotheses, defines variables model for testing hypotheses, and identifies the impact of investments for innovative high-tech enterprises of political association. Finally, we put forward relevant suggestions on improving the level of high-tech R & D and innovation to optimize institutional environment. The innovation of this paper is the method of measuring the political correlation coefficient associated with the degree of corporate politics, and to analyze the impact of political relevance in the high-tech enterprise certification process played by logistic regression to explore the politics associated with the implementation of national policy in the role. So that countries will recognize the importance of supervision on corporative giving financial subsidies and funding and other resources. The government must also complete the appropriate information disclosure and oversight.The main conclusions of the paper are as follows:Government relations existing within the enterprise will accelerate the process of the high-tech enterprise certification and improve the success rate of its certification of high technology. So if executives of the corporate are government-backed, it will bring their corporate some tax relief. Associated with the presence of political high-tech enterprises, the rate of the year’s patent application success reduced, indicating that as the political correlation coefficient of high-tech enterprise greater, the quantity of innovation and investment is smaller.By analyzing the understanding of the links between the country’s political background of high-tech enterprise certification and corporate senior management, and by presenting the assumptions and model validation study we concluded that the existence of political ties would reduce business investment for innovative technologies that can prove the relevant provisions of the state canceled executives serving in government is correct.