Political Connection,executive Incentive And Innovation Efficiency

Since the reform and opening up,China has achieved leapfrog development by relying on the economic growth mode promoted by material factor input.However,this mode is facing the shortage of resources and unsustainable supply of environment.Therefore,China's economic development is shifting from material factor driven to innovation-driven stage.As the primary driving force for development,innovation is the strategic support for building a modern economic system.And as the main body of innovation,enterprises play an important role in innovation activities.Private enterprises have the vitality of thinking,which can actively respond to changes in the economic environment,so that they are particularly prominent in innovation,and has become the main force of innovation in various industries.In the background of economic transformation and industrial structure upgrading Chinese various economic systems and policies are not perfect.And private enterprises still have some difficulties in innovation activities.As the government has a large amount of resources in the economic development,compared with state-owned enterprises,private enterprises will actively seek political connections to seek innovative resources,so as to achieve more stable and long-term development.The development and innovation of private enterprises not only depend on the external political environment,but also their internal governance is crucial.Enterprise innovation activities are characterized by high risk and long cycle.Executives will reduce innovation projects for the sake of short-term benefits of enterprises.Therefore,enterprise owners start to implement some incentive measures for executives,so as to urge executives to pay more attention to innovation development strategy.There are a lot of research achievements on enterprise innovation at home and abroad,but most of them are measured by the level of innovation input.As theachievement transformation of innovation input factors,innovation efficiency represents the core competitiveness of enterprises.Based on the relevant data of2011-2018 private listed companies as samples,using DEA model to measure the efficiency of enterprise innovation,and then use panel regression method to empirical analysis on the political relation,the correlation between executive incentive and enterprise innovation efficiency,and the results showed that both for private listed enterprises innovation efficiency has a promoting effect,while political association between the equity incentive and innovation efficiency has a significant positive adjustment,between salary incentive and innovation efficiency has a negative regulatory role.At the end of the paper,some Suggestions are provided on how to improve the innovation efficiency of private enterprises in the hope of providing help to the innovation development of private enterprises.