Research On The Impact Of Administrative Examination And Approcal Reform On Enterprise Innovation Performance

Since 2001,the reform of the administrative examination and approval system has been widely implemented throughout the country.Among them,the establishment of the administrative examination and approval center is an important form of institutional innovation in administrative examination and approval reform.Therefore,this paper mainly discussed the impact of business environment on technological innovation of enterprises,which is an important issue in China’s economy.In this paper,326 prefecture level cities in China have set up administrative examination and approval centers since 1997 as a quasinatural experiment,to investigate the impact of administrative examination and approval reform on the innovation performance of enterprises.Especially,we pay attention to the impact of the level of rule of law in the reform areas.The empirical results show that the level of regional rule of law has a significant positive impact on the enterprises’ innovation performance,while the reform of the establishment of administrative approval center has a significant positive impact in high rule of law area after the 2008 Global Financial Crisis.And,this promotion effect would be continued for three years after the reform,and would have a more significant impact on non-invention patents than invention.In terms of mechanism,this promotion is mainly achieved by increasing R&D investment rather than improving R&D efficiency.This study shows that the rule of law,as an important mechanism to restrain government administrative power,plays a key role in the reform of administrative examination and approval to promote enterprise innovation.The improvement of return on R&D investment relative to return on physical capital investment is also an important condition for administrative approval reform to promote the R&D performance of enterprises.