The Relationship Between Product Market Competition, Ownership Structure And Technological Capital

How to improve the level of technology innovation of enterprises for China’s future economic development is critical. Product market competition will increase the power of enterprise technological innovation. At the same time, ownership structure as an important part of internal governance structure would make a significant impact on technology innovation decision-making. Therefore, it is essential to make a study on the relationship between product market competition and technological capitalIssue of this study is to explore the relationship between product market competition and technological capital. Line of this research is exploring the relationship between product market competition and technological capital, and further exploring the regulation of ownership structure to the relationship. Through conducting and summarizing related scholars’research, we found the relationship between product market competition and technological capital is very complicated This paper adopted empirical analysis methods and selected manufacturing companies in Shanghai and Shenzhen listed from 2008 to 2013 for the study. Referencing related research at home and abroad, this paper selected and measured substitution variables for product market competition, ownership structure, and technological capital.At the same time, based on relevant theory this paper presents a number of assumptions just like the relationship between product market competition and technological capital is positive, the relationship between ownership concentration and technological capital is negative, he relationship between equity balance and technological capital is positive, the relationship between managerial ownership and technological innovation is positive and ownership structure has a regulatory role to the relationship between product market competition and technological capital. And on this basis, drawing on domestic and foreign scholars, study this paper build empirical model.The main contents of this paper is using statistical software Eviews6.0 and SPSS20.0, combined with previously alternative variables and empirical model conducting a statistical description to related variables index selection of the sample companies, and by the way verify assumptions made earlier through multiple linear regression assumptions. The result of the regression showed that the relationship between product market competition and technological capital is positive, the higher the degree of product market competition of enterprises, the higher the level of technological innovation is. The result of the regression also showed that ownership structure played a regulatory role to the relationship between market competition and technological capital. Concentration of ownership played a significant negative regulatory role to the relationship between market competition and technological capital. Equity balance played a significantly positive regulatory role to the relationship between market competition and technological capital Nature of equity played a positive regulatory role to the relationship between market competition and technological capital, but not significantly. Managerial ownership played a negative regulatory role to the relationship between market competition and technological capital, but also not significantly.The article concluded that the government should further accelerate the process of China’s market-oriented economy, and improve China’s socialist market economy, establish and consummate market competition mechanism, Corporate should optimize ownership structure in order to making more rational decision about technological innovations, Governments should give non-state-owned enterprises more preferential policies on technology innovation to increase the power of non-state-owned enterprises in technological innovation. This paper hoped that the recommendations presented before can provide little reference and reference to the state and corporate when formulate relevant policies and improve the technology capital strategy. Followed by a brief introduction of innovation and shortcomings of this paper, hoping it can be further improved in future studies.