Analysis Of The Impact Of Executive Incentives On Enterprise R&D And Innovation

In recent years,the state's emphasis on innovation capability has been continuously improved.Both the Outline of the National Innovation-Driven Development Strategy and the 13 th Five-Year National Science and Technology Innovation Plan have profoundly reflected China's urgent need for innovation and development.The ability of scientific and technological innovation is imminent,and it is required that there should be corresponding progress in both the country's comprehensive innovation capability and the micro-individual innovation capability.At the same time,society has entered the era of big data,and the rapid growth and rise of emerging technologies such as computer technology and artificial intelligence have made enterprises increasingly demanding for technological innovation.Even though innovation investment has high profitability,there are also many disadvantages such as long return on investment,high uncertainty of risks and returns,and high initial investment.Many corporate executives may be discouraged from personal interests linked to corporate performance.However,executives are important operators to grasp the important activities and development direction of enterprises.Therefore,how to use executive incentives to motivate executives to enthusiasm for innovation activities and promote the improvement of R&D and innovation of enterprises is worth pondering and exploring.So far,domestic and foreign research has mainly carried out empirical analysis on the impact of executive incentives on R&D innovation capabilities,case studies of executive incentives of a particular company and its ability to develop R&D are rare.Hikvision is a leading enterprise in the domestic security industry and a high-tech company.It needs to invest huge R&D expenditure every year to promote technological innovation and maintain its leading position in the industry.Therefore,this article selects Hikvision as the analysis object.This paper analyzes how executive incentives affect R&D and innovation and its influence mechanism through case analysis.This paper mainly adopts the literature analysis method,collects and reads a large number of domestic and foreign literatures,and then uses the inductive analysis method and the comparative analysis method to study the influence of executive incentives on enterprise R&D innovation.Firstly,this paper introduces the specific situation of the research background of executive incentives and R&D innovation,expounds the practical significance and theoretical value of the research,research status at home and abroad,research ideas and research contents,and innovations and shortcomings.Secondly,this paper introduces the concept of executive incentives and Hikvision,focuses on the specific content of Hikvision's restricted stock plan and employee's investment plan.At the same time,this paper compares the R&D investment and patent application between 2011 and 2017,and analyzes the specific contents of Hikvision's restricted stock plan and employee's investment plan.Comparing the changes of R&D investment and patent application between 2011 and 2017,this paper examines the implementation effect of executive incentives,and analyzes the impact of executive incentives on R&D innovation capabilities from the analysis of changes in R&D investment and innovation output.The specific conclusions are as follows:(1)Hikvision's executive incentives can mobilize executives' enthusiasm for innovation,enable executives to promote R&D investment,promote innovation output growth,and promote R&D and innovation capabilities;(2)low shareholding ratio of executives and severe unlocking conditions will affect the incentive effect of executive incentives.In addition,this paper points out the advantages and inadequacies of Hikvision executives' incentives,proposes improvement suggestions,and concludes the corresponding conclusions—the executive incentives can mobilize the executives' enthusiasm for innovation,thereby promoting the increase of R&D investment and innovation output,improve the R&D and innovation capability of enterprises,and put forward the following suggestions:(1)Formulate a reasonable and effective executive incentive mechanism to play a synergistic role;(2)Optimize the equity incentive system,appropriately increase the shareholding ratio of executives,and pay attention to the effectiveness of equity incentives.(3)Set relevant assessment criteria and improve the internal governance structure of the company.Through case analysis,this paper studies and summarizes the impact of executive incentives on R&D and innovation capabilities of enterprises.It intends to provide reasonable experience for other companies to promote reasonable and effective executive incentives,and to promote the R&D and innovation capabilities of enterprises.Therefore,this paper has certain theoretical value and practical significance.