Impact Of Rising Labor Costs On The Enterprises Innovation:Explained By Firm Size

The abundant and cheap labor resources have been one of the advantages of China's manufacturing industry in the international economic competition.The continuous rise of labor costs has a profound impact on corporate behavior,industrial upgrading and sustainable economic development.The existing literature suggests that rising labor costs can promote the innovation behavior of enterprises,rising labor costs despite an increase in production costs,but will encourage enterprises to adopt innovative behavior,improve competitiveness,so as to achieve the "creative destruction" stage.From a theoretical point of view,neoclassical economics,Schumpeter's growth theory and endogenous economic growth theory on labor costs and enterprise innovation mechanism has been discussed.However,deep into the reality of China's rising labor costs,it is often seen that two completely opposite phenomenon discussed in the process of economic transformation,which firms to choose the negative or positive response to deal with.Based on the characteristics of internal heterogeneity,the difference in the scale of the enterprise led to the ability to deal with the pressure of rising costs are different,in the systematic study of innovation theory,the scale of enterprises has an important impact on innovation activities.Based on the strictly stratified random sampling "China employer-employee survey"(CEES),the influence of heterogeneity of rising labor costs in different scale enterprise innovation behavior under the background of empirical study.The R and D strength and new product sales as a proxy for the enterprise's innovation,research found that rising labor costs for the investment of innovation has significant negative incentive effects of enterprise new product innovation has a significant "forced" effect,but the enterprise scale and labor costs of the interaction,found that the scale of enterprises decreased significantly rising labor costs and adverse impact on the enterprise's innovation,with the expansion of business scale,rising labor costs to the enterprise innovation "forced" effect is gradually increasing,the enterprise scale has significant moderating effect.The further analysis shows that the rising labor costs impact on enterprise innovation behavior has obvious difference among different scale enterprises,economies of scale,innovation skill skills differentiated and rising labor costs is an important mechanism for its formation,for small and medium-sized enterprises,innovation fund foundation is weak,lack of accumulation of skilled labor and labor costs is it difficult to rise quickly caused by an important reason for enterprise innovation activities effectively hedge against rising labor costs pressures.Accordingly,the dissertation puts forward some policy suggestions on how to improve the innovation ability of large enterprises,small and medium-sized enterprises and the government in the case of rising labor costs.