Institutional Environment,Executive Incentive And Technological Innovation

Under the new normal of economic development,national policies implement innovation-driven development strategies and regard innovation as an important driving force for achieving sustainable economic development and enhancing core competitiveness.Enterprises are the backbone of building an innovative country.Under the increasingly fierce competition,enterprises are facing more and more uncertainties,and the improvement of innovation ability can help enterprises to break through their own limitations and actively respond to the dynamic environment.Future development is crucial.Therefore,the factors related to technological innovation have always been the focus of academic,government and corporate concerns.Endogenous growth theory believes that increasing investment in R&D personnel and R&D funds can effectively improve the level of technological innovation.Therefore,explore how to establish this long-term investment mechanism to improve the level of innovation,improve corporate performance and sustained and steady economic development.Significant.As the important helm of enterprise operation decision-making,executives determine the formulation of enterprise innovation investment decisions and the operation and implementation of innovation activities.However,due to the characteristics of “large investment,high risk and long cycle”,the senior management lacks the incentive to invest in innovation.Therefore,an effective incentive contract can not only ease a series of contradictions between the principal and the agent,but also guide the executives to effectively allocate the innovation resources of the enterprise and make reasonable and innovative investment decisions.In addition,enterprises are in a specific macro environment,and their behaviors must adapt to the external governance environment at the economic,political,and legal levels.Therefore,the impact of executive incentives on innovation is bound to be restricted by the institutional environment..Based on China's special institutional background,this paper takes the A-share listed companies in Shanghai and Shenzhen stock markets from 2013 to 2017 as theresearch object,and deeply studies the relationship between institutional environment,executive incentives and technological innovation.The main conclusions are as follows: institutional environment Improvement can effectively improve the level of technological innovation;in terms of explicit incentive mechanism,salary incentives and equity incentives have a positive impact on technological innovation;in terms of implicit incentives,on-the-job consumption and technological innovation have a“U”-type relationship,and promotion Incentives have a negative impact on technological innovation.After further research,it is found that in the process of technological innovation,salary incentives are complementary to equity incentives and on-the-job consumption.In terms of the impact on technological innovation,the institutional environment is significantly different from salary incentives and on-the-job consumption.Complementary relationship;after distinguishing between areas with high and low institutional environment,there is a substitution effect between the institutional environment and the executive compensation and on-the-job consumption in the low-lying areas,while the institutional environment and the equity incentives in the higher areas have complementary effects;After the nature of property rights,the complementary effect of institutional environment and salary incentives is more significant in non-state-owned enterprises.However,in state-owned enterprises,the institutional environment and equity incentives and promotion incentives are both alternative relationships,and the complementary effects of institutional environment and on-the-job consumption.There is no significant difference between state-owned enterprises and non-state-owned enterprises;after the industry,in the three types of industries,the institutional environment and the on-the-job consumption are complementary effects,while in the technology-intensive industries,the institutional environment and the equity incentives exist respectively.The complementary effect,and the substitution effect of the promotion incentive,indicates that in the industry,Improvement of the institutional environment,equity incentive role in promoting technological innovation to be strengthened,whereas the influence of incentives for the promotion of technological innovation is weakened.Finally,according to the research conclusions of this paper,relevant suggestions are put forward: to improve the level of technological innovation of enterprises,it is necessary to increase the emphasis on the external institutional environment,not only to create a fair and open market competition environment,but also to appropriately reduce excessive government intervention in enterprises.Give full play to the regulatory role of the market.Not only that,but also strengthen the protection of intellectual property rights and improve the legal system,and provide effective external regulation for the implementation of incentive mechanism;from the perspective of incentive system,enterprises should design a systematic and scientific executive incentive integration system,focusing on incentive mechanisms.Collaboration and configuration between the two,at the same time,continue to strengthen the corporate governance constraints mechanism to provide a good internal environment for the effective implementation of incentive programs;in addition,should further strengthen the relationship between institutional environment and incentives,give full play to the institutional environment and incentives At the same time,enterprises should design corresponding incentive mechanisms to stimulate executives to improve their support for technological innovation by combining the nature of property rights and industry characteristics.