The Impact Of Officials' Change On Technological Innovation Of Enterprises

Innovation is fundamental to economic and social development.China is in the period of economic transition,accelerating the construction of an innovation-oriented country and improving the national independent innovation capacity has become important strategic guidelines.Innovation is the fate of the country,and the main source of national innovation is scientific and technological innovation of enterprises.The behavior of enterprise will be affected by the institutional environment,especially by the political environment.Local officials control the political and economic rights within the jurisdiction.The change of officials will lead to the uncertainty of the regional policy environment,thus the scientific and technological innovation behavior of enterprises will also be affected.Therefore,the paper considers the impact of local officials' change on enterprises' science and technology innovation behavior firstly.In addition,capital is the key factor for enterprises to carry out innovation activities.Government grants are an important source for enterprises to obtain innovation funds with the guidance of national innovation policies.In China,there are different types of enterprise ownership,thus the different strategic policies and decisions also lead to differences in the level of technological innovation of enterprises.On the basis of exploring whether government officials' changes affect the level of technological innovation of enterprises,the paper incorporates government grants and enterprise ownership into the research framework and conducts a comprehensive analysis,and then explains its impact mechanism and provide recommendations.Firstly,combining China's special reality and institutional background,this paper introduces the background and significance of the topic,and analyzes and summarizes the current research status at home and abroad after consulting relevant literature.Secondly,through combing the theory of government intervention and real options,the author proposes research hypothesis and establishes a model accordingly.Finally,based on the data of the turnover of Municipal Committee of the CPC in China from 2008 to 2017,it takes the Shanghai and Shenzhen A-share listed companies as the research object to measure the enterprise's science and technology innovation from the perspective of enterprise science and technology innovation decisionmaking and intensity,explore the impact of policy uncertainty caused by local officials' change on technological innovation of enterprises and further discuss the regulating effects of government grants and ownership and their joint adjustment effects.The results are as follows:(1)There is a significant negative correlation between officials' change and enterprises' science and technology innovation decision-making and intensity.The policy uncertainty caused by local officials' change will weaken the science and technology innovation of enterprises,leading to the decline of enterprises' willingness and intensity to innovate in science and technology.(2)Government grants can alleviate the negative effects of officials' change on science and technology innovation of enterprises.Enterprises with higher government grants will have less inhibitory effects on decision-making and intensity of science and technology innovation.(3)There are significant differences in the impact brought by officials' change on the science and technology innovation of enterprises with different ownership systems.Compared with state-owned enterprises,local officials' change has greater weakening effect on the decision-making and intensity of science and technology innovation of non-state-owned enterprises.(4)The regulating effect of government grants on officials' change and enterprises' science and technology innovation decision-making is also affected by their ownership,and it is more effective in non-state-owned enterprises.Considering the above-mentioned findings,this paper puts forward some relevant suggestions on how to reduce the policy and environmental uncertainty caused by local officials' change and improve the science and technology innovation of enterprises.In the end,this paper points out the inadequacies and limitations that exist in this research,and put forwards the prospect of future research.