The Influence Of The Mixed Ownership Reform On The SOEs' Innovation

Innovation is undoubtedly a critical driver of a country's economic growth."Innovation leading the transformation and upgrading of the real economy" is the strategic principle for China's current economic development,which arises new demands for enterprise innovation.As an important part of the national economy,the innovation of state-owned enterprises(SOEs)can help China's economic achieve development and transformation.Bureaucracy and system ossification caused by the absence of owner will make SOE lack of innovation capacity.In order to solve this problem,it is necessary to continually explore and attempt the reform of SOEs.The Third Plenary Session of the 18th CPC Central Committee put the SOE's mixed ownership reform on the agenda,leading to a new round of reform of SOEs.As the focus of the next round of economic reform,SOE's mixed ownership reform has continued to more cities and areas.Although the diversified ownership economy have already achieved great development in China,we put forward mixed ownership reform of SOEs again not only to provide legal system for reform,but also to solve the SOEs' problem of system ossification and insufficient innovation,and our final goal is to establish efficient modern enterprise system for SOEs.Based on the discussion of the mixed Ownership reform on The Third Plenary Session of the 18th CPC Central Committee,we make the china A-shares listed manufacturing companies from 2011 to 2015 into our sample.Using a difference-in-differences approach and multiple regression model,we study the influence of SOEs' mixed ownership reform on the SOEs' innovation.In order to make our results more reliable,we add the propensity score matching(PSM)into our study.Furthermore,in view of China's existing industry monopoly protection and unbalanced regional economic development,we group our sample by the industry attributes and the regional structure respectively,so as to further explore the difference influence of mixed ownership reform on the SOEs' innovation between competitive industry and monopoly industry or between eastern region and non eastern region.Finally,we further study the influence of macroeconomic policy variables on the SOE's innovation so as to study the policy effect of Mixed ownership reform.We find that mixed ownership reform has a significantly positive effect on the SOEs'innovation on the whole.More specifically,mixed ownership reform can significantly improve the SOEs' R&D investment,the total patent quantity and the invention patent quantity.Our conclusion is robust when we use propensity score matching to eliminate the heterogeneity bias.In addition,our group empirical regression results indicate that:Compared to the competitive industry,the mixed ownership reform in the monopoly industry has a more Significant effect on the SOEs' innovation;Compared to the non eastern region,mixed ownership reform in the eastern region has a more Significant effect on the SOEs' innovation.Besides,reform can effectively alleviate the negative impact of house price on SOE's innovation and can further promote the positive effects of credit and equity financing on SOE'S innovation.However,after the reform,the positive impact of private sector on SOE's innovation is weakerOur conclusions show that the mixed ownership reform has a significantly positive effect on the SOEs' innovation and this effect is more significant when the mixed ownership reform carried out in the monopoly industry or eastern region either.Therefore,we should adhere to the mixed ownership reform absolutely and unconditionally.Besides,our results suggest that the next round of reform should focus on the monopoly industry and should first carried out in eastern region so as to promote the reform of of ther areas.What's more,the government should manage the overheated real estate market and appropriately expend the scale of social financing,especially equity financing to further promote the positive impact of the reform on SOE's innovation.