Empirical Research On The Impact Of Technological Innovation On Enterprise Performance

The 19 th National Congress emphasized that "innovation is the first driving force for development." In the era that information and technology rapidly develop,technological innovation often determines the destiny of a company and even a country.The technological innovation is crucial for the business performance of companies.However,the effect of technological innovation on corporate performance is not always the same.According to researchs,the reasons why they came to different conclusions are the limiting conditions and influencing factors that affect the relationship between the two were not fully considered.The technological innovation activities of enterprises are affected by the local institutional environment,and the institutional environment of each place has a certain degree of difference due to the different levels of local economic development.Therefore,the research about the relationship among institutional environment,technological innovation and corporate performance appears to be very necessary.This paper studied the relationship between technological innovation and corporate performance from the perspective of institutional environment.Based on the data between 2013-2017 of 760 companies listed on the GEM in China in 2018,we studied both the relationship between technological innovation and corporate performance and the impact of institutional environment on the relationship between technological innovation and corporate performance with a total of 2761 observations..Based on empirical analysis,the conclusions of this paper as follows:(1)There is a significant positive correlation between technological innovation and corporate performance.(2)Compared places where government intervention are lower to which are higher,the positive impact of technological innovation on corporate performance is more significant.(3)Compared with the low financial market development,where the financial market develops more,the positive impact of technological innovation on corporate performance is more significant.(4)Compared places where the legal protection is lower,to which are higher,the positive impact of technological innovation on corporate performance is more significant.Finally,according to the empirical results,this paper suggested how to improve technological innovation and improve corporate performance from the perspectives of enterprises and governments,and point out the limitations of this paper and future research prospects.