Executive Incentive,Product Market Competition And Innovation Input

Innovation,as the motive force to promote national technological progress and long-term development of enterprises,is also the most important concern of all sectors of society.In the era of knowledge economy,with the needs of social development,more and more countries regard scientific and technological innovation as an important strategy.In the report of the Nineteenth National Congress,Xi reiterated that innovation is the first driving force leading development and an important support for building a modern economic system.It is clearly pointed out that the scientific and technological strength will rise substantially in 2035 and become one of the leading innovative countries.According to the report of the National Conference on Scientific and Technological Work,in 2016,the R&D investment of the whole society reached 1544 billion yuan,accounting for 2.1%of GDP,and the contribution rate of scientific and technological progress increased to 56.2%.Even so,China still has the problem of insufficient R&D capacity and low investment in innovation,which is far from the goal of ranking in the forefront of innovative countries.As the main body of scientific and technological innovation,enterprises are the important factors influencing innovation investment and improving innovation ability.There are abundant literatures on Influencing Factors of innovation at home and abroad,which can be summed up as two aspects:innovation motive force and innovation ability.Many scholars have discussed the influencing factors of innovation investment from the perspective of internal governance and external governance,but few have studied from the perspective of interaction between internal and external mechanisms.To some extent,innovation is an enterprise's behavior decision-making,which is affected by both internal and external environment.It is not comprehensive to study the influencing factors and governance mechanism of innovation from any aspect.In view of this,when considering the impact of executive incentives on innovation investment,this paper takes product market competition as a macro-factor,studies the impact of different executive incentives on innovation investment,and focuses on whether there are differences in the impact of short-term incentives and executive shareholding on innovation investment under different product market competition,so as to achieve a higher level in different market competition.Suggestions are provided for the selection of incentive modes.This paper chooses the data of listed companies on the motherboard of China from 2010 to 2017 as samples,and carries out empirical research in three steps.The first step is to establish the relationship model between short-term salary and innovation investment,and between executive shareholding and innovation investment,and to get the relationship between different ways of executive incentives and innovation investment.The second step is to establish the relationship model between product market competition and innovation investment.The third step is to establish the relationship model of product narket competition,executive incentive and innovation investment.The research results show that both short-term salary and executive stock ownership can effectively stimulate enterprise innovation investment;product market competition and innovation investment have an inverted U-shaped relationship;the fiercer product market competition,the stronger the incentive effect of short-term salary on innovation investment,the weaker the incentive effect of executive stock ownership on innovation investment;further research finds that product market competition has an inverted U-shaped relationship with innovation investment;the more intense product market competition,the stronger the incentive effect of The moderating effect of the relationship is more significant in non-state-owned enterprises,and the moderating effect on the relationship between executive shareholding and innovation investment is more significant in state-owned enterprises.