The Overseas Experience Of Executives And Corporate Innovation

As the world's largest emerging economy,China's economy is developing rapidly.In comparison,China still lags behind developed economies in innovation.With the steady progress of building an innovation-oriented country in China,innovation is playing an increasingly important role as the core driving force for economic and social development.In recent years,China's rapid economic transformation and economic globalization have intensified,China has implemented a more open policy on talent introduction,and more and more overseas talents choose to return home for development.This part of talents with overseas experience have received good education,have professional knowledge and core technology in line with international standards,and can apply these knowledge,ability and experience in work,accelerating the flow of knowledge and spillover effect.Overseas returnees are a powerful force in China's talent pool,which is of great significance for promoting China's economic and social development.In this context,it is of extraordinary significance to study the impact of the overseas experience of executives and corporate innovation.This paper uses the sample data of Shanghai and Shenzhen A shares listed companies from 2009 to 2017 to study the relationship between executives' overseas experience and corporate innovation.This paper first reviews the existing literature on the measurement and influencing factors of enterprise innovation,executive characteristics and corporate innovation,as well as the relationship between executives' overseas experience and corporate innovation.Enterprise innovation is influenced by micro-level enterprise characteristics,market economy development and macro-level social or national characteristics.Existing research on enterprise innovation focuses on both input and output,and innovation input and innovation output generally use R&D expenditure.And patents to measure.Executives with overseas experience have an impact on corporate innovation due to their strengths in human capital and social capital,as well as spillover effects based on this.After combining the high-level echelon perspective,fault-tolerant perspective and eyeball perspective,this paper analyzes that the overseas experience of executives will promote the input and output of enterprise innovation,as follows:(1)When there is at least one executive with overseas experience or an increase in the number of employees,it promotes corporate innovation;(2)Executives with overseas work experience and learning experience have significantly promoted corporate innovation,but executives with overseas work experience have a stronger promotion role;(3)When the executives with overseas experience are concurrently the chairman and CEO of the company,the promotion of corporate innovation is more obvious.Further,in the heterogeneity analysis,this paper studies the subsamples of observation samples according to the degree of marketization,the nature of property rights and whether it is an innovative enterprise to examine the differences between the overseas experience of executives and the innovation of enterprises in different enterprises.The results show that:(1)In areas with low marketization,the overseas experience of executives has a stronger role in promoting corporate innovation;(2)the positive relationship between overseas experience of executives in state-owned enterprises and corporate innovation is more significant;(3)In innovative enterprises,the overseas experience of executives is more significant in promoting corporate innovation.In the robustness test part,this paper analyzes the empirical results from three aspects: the endogeneity problem of the sample,the choice of proxy variables and the choice of regression model.The conclusions of this paper are still stable.The specific methods are Heckman two-stage regression,instrumental variable method,overseas experience of executives and transformation of enterprise innovation proxy variables,and Tobit model regression.Based on the overseas background of executives,this paper researchs the impact of executives' overseas experience on corporate innovation and enriches the research on the relationship between executives' overseas experience and corporate innovation.In addition,the different overseas experiences of executives and the different positions of executives with overseas experience were differentiated,and their impact on the innovation investment and output of enterprises was studied separately,which provided a new perspective for the research of executives' overseas experience.In addition,the relationship between the overseas experience of senior executives and enterprise innovation is extended to heterogeneous enterprises,focusing on the difference in the impact on different enterprises,which provides new thinking for the appointment of senior executives with overseas experience and the understanding of innovation-driven strategy.