An Empirical Research On The Effects Of Political Connection On Innovation Investment

With the deepening of the innovation driven era,China gradually accelerate the pace of innovation-driven development strategy,acceleration to an innovative country and the world economic power.It means we have to promote enterprise really become the technological innovation decision-making.Accordingly R&D,the main body of scientific research organization and the achievements transformation has become a major task for the current our country that can not be ignored.However,under the background of China's transformation,in order to overcome the”formal system gap”,enterprises chose to pursue the horizontal social capital,and by constructing the way of political association,they sought the informal system as an alternative protection mechanism.The influence of political connection on enterprise innovation has attracted wide attention.To verify whether political relation is advantageous to the enterprise innovation,this paper designed a political connection"quantity"and"quality"of the bidirectional dimensions indicators,and from the situation of the corporate governance perspective.discusses the political connection and enterprise innovation investment as well as the relationship between ownership concentration between the regulating effect of situational factors.Based on the empirical analysis of the listed companies from 2010 to 2015,it is found that the level and depth of political connection are not conducive to the innovation investment of the enterprise.Higher ownership concentration will reduce the impact of political connection depth on innovation investment.The conclusion of the research is of great significance to the government policy formulation and the enterprise innovation strategy management.On the one hand,from the perspective of the government,we should weaken excessive government intervention as soon as possible,establish a reasonable assessment index system,and strengthen the cultivation of innovative entrepreneurs and guide the establishment of a”new' type of government and enterprise relations.On the other hand,from the perspective of enterprises,we should rationally formulate political strategy,pay attention to and perfect our own governance structure to create a good internal governance environment,cultivate innovative culture and spirit.