On Seniority And Enterprise Innovation In State-owned Enterprise

China will be an innovative country by 2020.Innovation is regarded as a development strategy by the country.For enterprises,innovation is an important means to improve their competitiveness.As a tangible product of innovation,patent has become an important core competitiveness of enterprises,reflecting the core competition of the core knowledge economy,and also expanding the innovation tension of enterprises.However,most of the existing research is carried out from the aspects of incentive policy,R&D investment and patent system,and seldom regard the impact of culture as the breakthrough point of enterprise innovation.Hierarchy is a unique product of China's national conditions,which has a long history of influence on human production and life activities.State-owned enterprises take public ownership as their economic basis,and the formation of their hierarchical system has obvious administrative characteristics.Through the empirical study of the state-owned enterprises in Shanghai and Shenzhen Stock Exchanges,this paper finds that there is a negative correlation between the hierarchical system and enterprise innovation,that is,the hierarchical system hinders enterprise innovation,and the higher the hierarchical system,the weaker the innovation ability.Secondly,we analyzed the influencing factors of the hierarchy system,and found that the degree of market competition determines the strength of the hierarchy system.The more intense the market competition,the weaker the hierarchy system.We also analyzed the further mechanism of the hierarchy system,and found that the hierarchy system affects enterprise innovation through affecting management costs and average academic qualifications.Finally,we examine the impact of enterprise innovation on performance,and find that enterprise innovation can promote enterprise performance,and has sustainability.