Research On The Effect Of Equity Incentive Type On Innovation Performance In Medical Information Industry

Since 2015,China has introduced a series of health care reform policies,resulting in a significant increase in the demand for medical information systems such as electronic medical records systems,which has attracted much attention.The medical information industry is bound to merge over time,so it is urgent to establish the competitive advantage through R&D innovation.Equity incentive,information transparency,compensation incentive and so on can promote R&D innovation,but all listed companies in the industry have adopted equity incentive.It is worth paying attention to.Compound equity incentive accounts for only 8.97%of the total over the years,compared to 27.7%in the medical information industry.How does the high frequency application of compound equity incentive in the industry relate to the improvement of R&D innovation?What is the difference between stock option,restricted stock and compound equity incentive,in the mechanism that incentives R&D innovation?In general,which type of stock incentive has a more significant impact on overall innovation performance?Based on the medical information industry,this paper takes B-soft,a leading enterprise in the industry,as an example,which has implemented compound equity incentive and restricted stock incentive.This paper focuses on the development characteristics of medical information industry,points out the urgency of improving the level of R&D innovation,compares several methods for enterprises to stimulate R&D innovation,and demonstrates the inevitability of equity incentive being widely adopted in medical information industry.Then it demonstrates the mechanism of equity incentives to encourage R&D innovation objects and act on the innovation performance indicators from the three stages of R&D innovation.It also compares the differences in the incentive effects of stock option,restricted stock,and compound equity incentive.Finally,the paper analyzes the scheme and motivation of B-soft’s two stock incentive plans,and compares the effect of compound equity incentive and restricted stock incentive on innovation performance.Research shows that:Firstly,equity incentives,through the mechanism of alleviating the principal-agent problem,improving the level of risk-taking,long-term incentives,and binding talents,urge the management to strengthen R&D investment,improve the output of core technical personnel,encourage core business personnel to achieve R&D income,and control labor costs of knowledge-based employees,thereby improving overall innovation performance.Secondly,stock option is suitable for early medical information enterprises,compound equity incentive is suitable for stimulating management’s R&D investment,and restricted stock is suitable for stimulating core employees’ innovation output and R&D revenue.Thirdly,restrictive stock had a more significant incentive effect on overall innovation performance based on the case of B-soft.The enlightenments for medical information enterprises are:early deployment of R&D innovation,utilization of equity incentives to promote R&D innovation,and emphasis on core employee incentives in the era of knowledge economy.