A Study On The Relationship Between Political And Business Relations And Types Of Corporate Innovation

Since the 18 th Party Congress,General Secretary Xi Jinping has placed innovation at the center of the overall situation of China’s work and attached great importance to the development of technological innovation.He has put forward many new ideas,assertions and requirements around the implementation of the national innovation-driven development strategy and accelerated the promotion of all-round technological innovation based on technological innovation,and the participation of government departments in the innovation process of enterprises has gradually increased.The relationship between government-business relationship and enterprise innovation has gradually become a hot topic,and more and more scholars have started to investigate the relationship between government-business relations and enterprise innovation.However,there is a relative lack of research on the relationship between political and business relations and types of corporate innovation.In this paper,we adopt the activity theory perspective and apply the qualitative research method of rooted theory to select 10 enterprises that have carried out innovation activities in the past two years to conduct interviews and in-depth exploration of the relationship between government business relations and types of enterprise innovation,so as to provide new explanations for understanding how political-business relations influence enterprises to carry out different types of innovation activities,and the study finds that:In the activity theory framework,government is an important community for firms’ innovation activities,and firms’ innovation activities are mainly influenced by government rules,tools and division of labor,and interactions with government officials,and when these elements change,the objects of activities also change,which leads to different innovation outcomes,i.e.,breakthrough innovation and incremental innovation.First,when there are significant changes in the macro environment as well as rules,it promotes breakthrough innovation activities;when there are small changes in micro rules,it stimulates firms to choose incremental innovation.Second,when the government provides a wide range of tools and the support of tools is strong,enterprises are more willing to carry out breakthrough innovation;when the government provides a single type of tools and the support is small,enterprises will be more inclined to choose incremental innovation.Third,when the government and enterprises interact at a high level and frequency,enterprises will be prompted to choose to carry out breakthrough innovation;when the government and enterprises interact at a lower level and frequency,enterprises will be more inclined to carry out incremental innovation activities.When the rules,tools,and interactions between business and government are strong,it facilitates breakthrough innovation activities,and when the rules,tools,and interactions between business and government are weak,it hinders breakthrough innovation activities,leading firms to choose incremental innovation activities.