Study Of Equity Incentive For R&D Personnel Of Tech SMEs

Technology small and medium-sized enterprises (Tech SMEs) have developed into an important force in China’s economic developent and achieved good results rely on their technological advantages and flexible operation mechanisms. Research and development (R & D) personnel, as core technical staff, provide basic guarantee to Tech SMEs to get core power and competitive advantages. Therefore, how to maximize working enthusiasms of R&D personnel and create largest profits has become a key issue for enterprises. Many incentive modes are available. Equity incentive, which is studied in this paper, has long-term incentive effects, connects interests of R&D personnel with interests of enterprises, and makes a great contribution to improvement of the corporate governance structure and corporate performance promotion. The research objective of this paper is to provide valuable reference and recommendations to Chinese Tech SMEs in their equity incentive implementation and help Tech SMEs to smoothly implement equity incentives.In this paper, research methods, including literature review,questionnaire survey and empirical testing, are used to make a systematic analysis of equity incentives to R&D personnel of Tech SMEs. This paper falls into 3 parts:theoretical research, empirical research and conclusions and recommendations. The first part is theoretical research. The research scope is identified. Based on an overview of relevant theories and research dynamics of R&D equity incentives, this chapter introduces research contents, builds the research framework, and predicts research results. Moreover, as R&D has uncertainties, A dynamic game analysis is made of equity incentives to R&D personnel in Tech SMEs, to analyze factors affecting equity incentives. The second part is empirical research. In this part, work is done to investigate executives and R&D personnel of Tech SMEs, and make a detailed analysis of the current situation, existing problems, barriers and required policy support for Chinese Tech SMEs to implement equity incentives. Moreover, combined with the theoretical research and the investigation results put forward empirical hypotheses. Technology enterprises in the growth enterprise market are taken as the sample data, to analyze influence of the equity incentive degree on business performance of enterprises and working performance of R&D personnel. In this third part, conclusions andrecommendations are presented. On the basis of investigation and empirical research results, recommendations are developed to deal with problems that Chinese Tech SMEs face in the implementation of equity incentives.Through systematic research in this paper, the following 2 conclusions are drawn. On the one hand, empirical research results show that the equity incentive degree has a positive correlation with business performance of enterprises and working performance of technical R&D personnel. That is to say, greater equity incentive degree produces better effects of equity incentives. On the other hand, through a questionnaire survey and field interview, we can see the equity incentives to R&D personnel of Tech SMEs faced many obstacles.Such as the establishment of R & D personnel;the relevant supporting policies is not perfect;how to establish the proportion of equity incentive lack of professional guid;anceenterprise leaders lack of confidence.It is recommended that work should be done to perfect the performance assessment system of R&D personnel;reasonably set the equity incentive ratio;improve supporting policies and legal environment; ound equity incentive advisory and financial institutions; promote the construction of the OTC market.