Government Decentralization,market Competition And Innovation Of State-owned Enterprises

Innovation is an important driving force for the sustainable development of the society and economy.Enterprises are the micro-subjects of technological innovation,and the improvement of enterprises' innovation ability is a crucial part in the process of achieving high-quality development in China.As important subjects of China's national economy,state-owned enterprises are supposed to be the vanguard of the country's development.However,due to the special nature of state-owned enterprises' property rights,their daily operations are subject to the intervention of the governments which are their ultimate controllers,so they bear the certain policy burden,and their business objectives have been distorted,resulting in low operating efficiency and low innovation efficiency.Nowadays,China further deepens the reform of state-owned enterprises and promotes the decentralization of government,so as to grant state-owned enterprises more independent management rights and promote their market-oriented operation.Meanwhile,China takes the improvement of state-owned enterprises' innovation ability as an important goal of reform.Under the background of deepening the reform of state-owned enterprises,can government decentralization effectively encourage state-owned enterprises to innovate? As an important external influencing mechanism,how does market competition affect the relationship between government decentralization and innovation of state-owned enterprises?Therefore,based on the perspective of state-owned corporate pyramids,this paper takes A-share state-owned listed companies from 2013 to 2017 as the research objects,and explores the relationship between government decentralization,market competition and innovation of state-owned enterprises through empirical research.The main research questions in this paper are as follows:(1)How does government decentralization affect the innovation of state-owned enterprises?(2)How does market competition affect the relationship between government decentralization and innovation of state-owned enterprises?This paper draws the following conclusions:(1)Government decentralization has a significant positive effect on the innovation of state-owned enterprises,which can effectively promote the innovation investment and innovation output of state-owned enterprises.(2)Market competition plays a positive role in regulating the relationship between government decentralization and innovation of state-owned enterprises.The higher the degree of market competition faced by state-owned enterprises,the more significant the role of government decentralization in promoting innovation input and output of state-owned enterprises.(3)Differences in regional marketization degree will also affect the relationship between government decentralization and innovation of state-owned enterprises.Compared with regions with lower marketization levels,government decentralization can play a more significant positive role in promoting the innovation input and output of state-owned enterprises in regions with higher marketization levels.The main innovations of this paper are as follows:(1)Explores the relationship between government decentralization,market competition and innovation of state-owned enterprises.(2)Focusing on the background of deepening the reform of state-owned enterprises,considers the impacts of government decentralization on the innovation level of listed companies controlled by the central government and local governments,and explores the relationship between government decentralization and innovation of state-owned enterprises more comprehensively.(3)Considers the overall level of innovation activities of state-owned listed companies,and measures the innovation level of state-owned listed companies more truly and comprehensively.The research in this paper enriches the research perspective of government decentralization and innovation of state-owned enterprises,and further deepens the understanding of the advantages and disadvantages of the pyramidal holding structure of state-owned enterprises,and provides further empirical evidence for the hypothesis of building the pyramidal structure of state-owned enterprises to weaken government intervention,and also provides a certain reference for how the government decentralization can produce a more effective effect of promoting enterprise innovation.